Transmission of monetary policy impulses on the capital structure of manufacturing firms: Evidence from an emerging economy

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

International Review of Economics & Finance Pub Date : 2024-11-01 DOI:10.1016/j.iref.2024.103704

Akhilesh Kumar Kamalakant Yadav, Ajaya Kumar Panda

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Abstract

A country's monetary policy influences a firm's economic decisions by influencing the cost of external debt offered to firms by commercial banks. However, research on the effect of monetary policy on the capital structure of firms located in bank credit-driven developing economies is limited. This research paper tries to fill that gap by examining the effects of monetary policy impulses on the short- and long-term capital structure of firms in an emerging economy. Using quadratic econometric equation and GMM regression model study analyzes annual financial data of 2575 non-financial firms belonging to 8 manufacturing sectors covering the duration of 13 years ranging from 2009 to 2021. The results show a curvilinear relationship between monetary policy impulses and firms' capital structure in different manufacturing industry sectors. Monetary policy was found to have a different impact on short-term and long-term borrowings of financially flexible and inflexible manufacturing firms.

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货币政策冲动对制造业企业资本结构的传导：新兴经济体的证据

一国的货币政策会影响商业银行向企业提供外债的成本，从而影响企业的经济决策。然而，有关货币政策对银行信贷驱动的发展中经济体企业资本结构影响的研究十分有限。本文试图通过研究货币政策冲动对新兴经济体企业短期和长期资本结构的影响来填补这一空白。研究采用二次计量经济学方程和 GMM 回归模型，分析了 8 个制造业部门 2575 家非金融企业的年度财务数据，时间跨度从 2009 年到 2021 年，为期 13 年。研究结果表明，货币政策冲动与不同制造业部门的企业资本结构之间存在曲线关系。研究发现，货币政策对财务灵活和不灵活的制造业企业的短期和长期借款有着不同的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Economics & Finance Multiple-

CiteScore

7.30

自引率

2.20%

发文量

253

期刊介绍： The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.