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Corporate Interest Rates and the Financial Accelerator in the Czech Republic

  • Fidrmuc, Jarko
  • Horváth, Roman
  • Horváthová, Eva

We analyze the determinants of the corporate interest rates and the financial accelerator in the Czech Republic. Using a unique panel of 448 Czech firms from 1996 to 2002, we find that selected balance sheet indicators influence significantly the firm-specific interest rates. In particular, debt structure and cash flow have significant effects on interest rates, while indicators on collateral play no significant role. We find evidence that monetary policy has stronger effects on smaller firms than on medium and larger firms. Finally, we find no asymmetric effects in the monetary policy over the business cycle.

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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 7191.

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Date of creation: 05 Nov 2008
Date of revision:
Handle: RePEc:lmu:muenec:7191
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  13. Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393 Elsevier.
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