Sectoral Effects of Monetary Policy: The Evidence from Publicly Traded Firms |
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Authors: | Dennis W Jansen Ruby P Kishan Diego E Vacaflores |
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Institution: | 1. Department of Economics, Texas A&M University, College Station, TX 77843, USA;2. Department of Finance and Economics, Texas State University, San Marcos, TX 78666, USA |
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Abstract: | This article examines the impact of monetary policy on net sales of publicly traded firms in various sectors of the U.S. economy. We find that monetary policy has a heterogeneous effect on firms in different industries, with the strongest effect on firms in Retail and Wholesaling. Balance sheet characteristics, especially size, influence the impact of policy. Larger firms in several industries are able to mitigate the effect of policy. We find mixed results for firms' working capital, short‐term debt ratio, and leverage ratio with respect to the operation of the credit channel of monetary transmission mechanism. |
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Keywords: | E52 E32 L16 |
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