The effects of monetary policy on stock returns: Financing constraints and “informative” and “uninformative” FOMC statements

Chun-Li Tsai

International Review of Economics & Finance, 2014, vol. 29, issue C, 273-290

Abstract: We use firm-level data to reexamine the issue of possibly different impacts of “informative” and “uninformative” FOMC statements on stock returns in the period from 1999 to 2007. Our paper finds that stock returns respond significantly to surprise monetary shocks based on the informative FOMC statements; there is little evidence to show that stock returns respond to surprise monetary shocks based on uninformative statements.

Keywords: Monetary policy; Stock returns; Informative FOMC statement; Financial constraints (search for similar items in EconPapers)
JEL-codes: E52 E58 E65 G12 G14 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:29:y:2014:i:c:p:273-290

DOI: 10.1016/j.iref.2013.06.003

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