A0866
Title: Asymmetric effects of monetary policy on firms
Authors: Ezgi Kurt - Bentley University (United States) [presenting]
Abstract: Firm-level evidence on the asymmetric effects of monetary policy in the US is documented. Focusing on firm-level data from 1980q3 to 2016q2, we find that monetary contractions triple the effects of monetary expansions on firms' employment, investment rate, and sales. Furthermore, we examine the role of alternative financial characteristics in propagating these asymmetric effects. My findings show a higher level of asymmetry for firms with a small size, low leverage, high liquidity, or a no dividend-paying status. These results provide evidence that financial characteristics play a role in propagating the asymmetric effects of monetary policy.
