Monetary policy transmission and firms' financial constraints

I test the relationship between monetary policy and firms' financial constraints. Since financial constraints are inherently unobservable, I estimate a corporate finance model to infer the shadow cost of external finance for Colombian firms during 2004-2015. The results show that monetary policy, through changes in the real intervention interest rate, has a significant positive comovement with Colombian firms' financial constraints. Complementary evidence suggests that firms with higher collateral and higher debt-to-assets ratio suffered larger increases in their shadow value of external finance after a monetary contraction. By contrast, after a monetary tightening, firms paying dividends and with high cash flow were the least constrained.

• Autores: Yamin Silva, Juan Camilo
• Fecha de publicación: 2018
• Institución: Universidad de los Andes
• Repositorio: Séneca: repositorio Uniandes
• Idioma: eng
• OAI Identifier: oai:repositorio.uniandes.edu.co:1992/35001
• Acceso en línea: http://hdl.handle.net/1992/35001
• Palabra clave: Política monetaria - Investigaciones - Colombia - 2004-2015; Restricciones al comercio - Investigaciones - Colombia - 2004-2015; Tasas de interés - Investigaciones - Colombia - 2004-2015; Flujo de caja - Investigaciones - Colombia - 2004-2015; Economía
• Rights: openAccess
• License: http://creativecommons.org/licenses/by-nc-nd/4.0/