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Financial Accelerator Effects in the Balance Sheets of Czech Firms Author info | Abstract | Publisher info | Download info | Related research | Statistics Roman Horváth () (Czech National Bank, Monetary and Statistics Department, Prague, Czech Republic , Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic )
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In this paper we examine a financial accelerator hypothesis analyzing the determinants of firm-level interest rates. Using a panel of the financial statements of 448 Czech firms in 1996- 2002, we find that firm’s balance sheet indicators are important determinant for the firm-level interest rates. Indebtness and market access matter in particular. The strength of balance sheets is procyclical. There is also evidence that monetary policy has stronger effects on small firms and during a period of the excess demand for credit (but not during a downturn).
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Paper provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its series Working Papers IES with number
96.
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Length: 19 pages
Date of creation: 2005Date of revision:
2005Handle: RePEc:fau:wpaper:wp096Contact details of provider: Postal: Opletalova 26, CZ-110 00 Prague Phone: +420 2 222112330 Fax: +420 2 22112304 Email: Web page: http://ies.fsv.cuni.cz/ More information through EDIRC
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Keywords: Monetary policy transmission ; interest rates ; balance sheet channel ; financial accelerator ; Other versions of this item:
Find related papers by JEL classification: G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
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