Heterogeneity in corporate debt structures and the transmission of monetary policy

Abstract

This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.

The influence of digital finance based on the intermediary effect of investor confidence on organizations’ financing constraints

“…Proportion of strong binding debt: Corporate debt can be divided into business, credit, individual (e.g., employee compensation payable), and debt under tax obligations ( Holm-Hadulla and Thürwächter, 2021 ). Among them, credit debt and debt under tax obligations have the hard constraint of repaying the principal or interest on time, and there is room for negotiation between commercial and personal debts.…”

The Zombie Lending Channel of Monetary Policy

“…Furthermore, differences in the corporate debt structure of zombie firms, who rely more on bank debt than other firms, as we have seen in Table 1, may also imply a stronger response to monetary policy shocks; zombie firms may have less flexibility to find alternative sources of funding to finance their investment when the shock hits (Becker and Ivashina 2014, Ippolito et al 2018, Crouzet 2021. Corporate bonds typically carry a lower interest rate than bank loans, have longer maturities, are issued at fixed rates, and are less exposed to cyclical fluctuations in credit supply (Becker and Ivashina 2014, Ippolito et al 2018, Crouzet 2021, Holm-Hadulla and Thürwüchter 2021.…”

Navigating the Housing Channel of Monetary Policy Across Euro Area Regions

“…The EA-MPD differentiates between three time windows: the publication of the press release, the press conference, and the union of these two windows, referred to as "monetary policy event". In our analysis, we consider the window of the monetary policy event as a reference period (Enders, Hünnekes andMüller, 2019, Holm-Hadulla andThürwächter, 2021). 10…”