Does Monetary Policy Affect A Firm’s Investment Through Leverage? Micro Evidence for India

The paper investigates whether the effects of monetary policy on firm investment can be transmitted through leverage. The findings indicate that monetary contractions reduce investment for highly leveraged firms. The estimates imply that a 1 percentage point tightening of liquidity reduces investment by 0.4% through leverage.

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Year of publication:	2006
Authors:	Ghosh, Saibal ; Ghosh, Saurabh
Published in:	Economia Internazionale / International Economics. - Camera di Commercio di Genova. - Vol. 59.2006, 1, p. 17-31
Publisher:	Camera di Commercio di Genova

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Type of publication:	Article
Classification:	C33 - Models with Panel Data ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; G32 - Financing Policy; Capital and Ownership Structure
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004984438