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

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  • Tsai, Chun-Li
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    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Review of Economics & Finance.

    Volume (Year): 29 (2014)
    Issue (Month): C ()
    Pages: 273-290

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    Handle: RePEc:eee:reveco:v:29:y:2014:i:c:p:273-290

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    Web page: http://www.elsevier.com/locate/inca/620165

    Related research

    Keywords: Monetary policy; Stock returns; Informative FOMC statement; Financial constraints;

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