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The impact of monetary policy and agent heterogeneity on firm financing structure: evidence from the USA

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  • Anna Malinowska

Abstract

Using panel modelling and firm-level data for 222 US listed companies I investigate how changes in monetary policy approximated by the three-month US LIBOR interest rate and its combined effect with firm-specific characteristics influenced firms’ financing decisions and their liability structure during the period 2005−2014. Reported findings suggest that despite the Zero Lower Bound on the Federal Funds Rate, the three-month US LIBOR has retained its impact on firm total debt, long-term bank debt and short-term trade credit. Monetary policy changes were found to have affected firm’s liability structure, especially through parameters such as size, collateral and profitability.

Suggested Citation

  • Anna Malinowska, 2016. "The impact of monetary policy and agent heterogeneity on firm financing structure: evidence from the USA," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    • Handle: RePEc:eko:ekoeko:46_121
    DOI: 10.17451/eko/46/2016/221
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    File URL: http://ekonomia.wne.uw.edu.pl/ekonomia/getFile/795
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