Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?

This paper focuses on the influence of the European Central Bank's (ECB) monetary policies on non-financial firms. It sheds light on non-financial firms' decisions regarding leverage, and on how the ECB's conventional and unconventional policies may have affected them. The paper also...

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Authors: Cohen, Lior, Gómez-Puig, Marta, Sosvilla Rivero, Simón
Format: article
Status:Versión aceptada para publicación
Publication Date:2019
Country:España
Institution:Universidad de Barcelona
Repository:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/140860
Online Access:https://hdl.handle.net/2445/140860
Access Level:Open access
Keyword:Política monetària
Dividends
Capital
Monetary policy
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repository_id_str
spelling Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?Cohen, LiorGómez-Puig, MartaSosvilla Rivero, SimónPolítica monetàriaDividendsCapitalMonetary policyDividendsCapitalThis paper focuses on the influence of the European Central Bank's (ECB) monetary policies on non-financial firms. It sheds light on non-financial firms' decisions regarding leverage, and on how the ECB's conventional and unconventional policies may have affected them. The paper also examines how these policies influenced non-financial firms' decisions on capital allocation - primarily capital spending and shareholder distribution (for example, dividends and share repurchases). We use an exhaustive and unique dataset comprised of income statements and balance sheets of leading non-financial firms operating in the European Economic and Monetary Union (EMU). The main results suggest that ECB's monetary policies have encouraged firms to raise their debt burden, especially after the global recession of 2008. Finally, the ECB's policies, especially after 2011, also seem to have led non-financial firms to allocate more resources not just to capital spending but to shareholder distribution as well.Taylor and Francis2019info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2445/140860Articles publicats en revistes (Economia)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésVersió postprint del document publicat a: https://doi.org/10.1080/00036846.2019.1602715Applied Economics, 2019, vol. 51, num. 45, p. 4920-4938https://doi.org/10.1080/00036846.2019.1602715(c) Taylor and Francis, 2019info:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/1408602026-05-27T06:46:51Z
dc.title.none.fl_str_mv Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
title Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
spellingShingle Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
Cohen, Lior
Política monetària
Dividends
Capital
Monetary policy
Dividends
Capital
title_short Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
title_full Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
title_fullStr Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
title_full_unstemmed Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
title_sort Has the ECB's Monetary Policy Prompted Companies to Invest or Pay Dividends?
dc.creator.none.fl_str_mv Cohen, Lior
Gómez-Puig, Marta
Sosvilla Rivero, Simón
author Cohen, Lior
author_facet Cohen, Lior
Gómez-Puig, Marta
Sosvilla Rivero, Simón
author_role author
author2 Gómez-Puig, Marta
Sosvilla Rivero, Simón
author2_role author
author
dc.subject.none.fl_str_mv Política monetària
Dividends
Capital
Monetary policy
Dividends
Capital
topic Política monetària
Dividends
Capital
Monetary policy
Dividends
Capital
description This paper focuses on the influence of the European Central Bank's (ECB) monetary policies on non-financial firms. It sheds light on non-financial firms' decisions regarding leverage, and on how the ECB's conventional and unconventional policies may have affected them. The paper also examines how these policies influenced non-financial firms' decisions on capital allocation - primarily capital spending and shareholder distribution (for example, dividends and share repurchases). We use an exhaustive and unique dataset comprised of income statements and balance sheets of leading non-financial firms operating in the European Economic and Monetary Union (EMU). The main results suggest that ECB's monetary policies have encouraged firms to raise their debt burden, especially after the global recession of 2008. Finally, the ECB's policies, especially after 2011, also seem to have led non-financial firms to allocate more resources not just to capital spending but to shareholder distribution as well.
publishDate 2019
dc.date.none.fl_str_mv 2019
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/140860
url https://hdl.handle.net/2445/140860
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1080/00036846.2019.1602715
Applied Economics, 2019, vol. 51, num. 45, p. 4920-4938
https://doi.org/10.1080/00036846.2019.1602715
dc.rights.none.fl_str_mv (c) Taylor and Francis, 2019
info:eu-repo/semantics/openAccess
rights_invalid_str_mv (c) Taylor and Francis, 2019
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Taylor and Francis
publisher.none.fl_str_mv Taylor and Francis
dc.source.none.fl_str_mv Articles publicats en revistes (Economia)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,301603

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