Monetary policy shocks and distressed firms’ stock returns: Evidence from the publicly traded U.S. firms

Kim, ST ORCID: 0000-0002-8757-1476 and Rescigno, L (2017) Monetary policy shocks and distressed firms’ stock returns: Evidence from the publicly traded U.S. firms. Economics Letters, 160. pp. 91-94.

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Abstract

We study U.S. firms’ stock-return sensitivities to monetary policy shocks over the 2001–2015 period. Expansionary monetary shocks disproportionately increase returns of a distressed firm which has profit substantially smaller than its interest expense and is in need of external financing.

Item Type:	Article
Uncontrolled Keywords:	Monetary policy shock, Stock returns, Distressed firm, External financing
Depositing User:	Symplectic Admin
Date Deposited:	20 Sep 2017 10:47
Last Modified:	03 Mar 2023 11:02
DOI:	10.1016/j.econlet.2017.09.009
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3009536