The Impact of Monetary Policy on Financing of Czech Firms

Ruslan Aliyev, Dana Hájková and Ivana Kubicova

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: This paper uses firm-level financial data for Czech firms and tests for the role of companies’ financial structure in the transmission of monetary policy. Our results indicate that higher short-term interest rates coincide with lower shares of total debt, short-term bank loans, and long-term debt. We find that firm-specific characteristics, such as size, age, collateral, and profit, affect the way in which monetary policy changes are reflected in the external financing decisions of firms. These findings indicate the presence of informational frictions in credit markets and hence provide some empirical evidence of the existence of broad credit and relationship lending channels in the Czech Republic.

Keywords: Credit channel; Czech Republic; external finance; monetary policy transmission (search for similar items in EconPapers)
JEL-codes: E44 E51 E52 G21 G32 (search for similar items in EconPapers)
Date: 2014-06
New Economics Papers: this item is included in nep-cba, nep-cfn, nep-mac, nep-mon, nep-sbm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The Impact of Monetary Policy on Financing of Czech Firms (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2014/05

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