Leverage, monetary policy, and firm investment

Article OPEN
Charles X. Hu;
(1999)
  • Subject: Financial leverage ; Monetary policy ; Investments

In this paper, I investigate whether the effects of monetary policy on firm investment can be transmitted through leverage. I find that monetary contractions reduce the growth of investment more for highly leveraged firms than for less leveraged firms. The results sugge... View more
  • References (26)
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