- Tytuł:
- Negative Interest Rates, COVID-19, and the Finances of Listed Euro Firms
- Autorzy:
- von Eije, Henk
- Powiązania:
- https://bibliotekanauki.pl/articles/14108444.pdf
- Data publikacji:
- 2021-12-28
- Wydawca:
- Wyższa Szkoła Bankowa we Wrocławiu
- Tematy:
-
Negative interest rates
European Central Bank
German government bond yields
short-term firm financing
liquidity ratios
debtor ratios
creditor ratios
dividends
long-term borrowing cash flows
non-liquid investments
corona crisis
COVID-19 - Opis:
- Aim: The paper measures the impact of negative interest rates on listed firms in the original euro zone countries. It also measures the impact of the first COVID-19 year. Design / research methods: The paper uses panel data to measure the influence of the short-term ECB deposit rate and the 10-years German bond yield on short-term and long-term firm variables. Cross section fixed effects are applied to first differences and dummy variables. For liquidity and non-liquid assets the effects are also measured for small and large companies, for sectors, and for countries. Conclusions / findings: Corporate liquidity ratios and creditor ratios decline when short-term ECB-rates fall. If ECB rates are negative, liquidity ratios are further reduced by 0.6 percentage points. Declining long-term German government bond yields increase non-liquid assets, while negative yields boost these assets by 4.5% extra. In the first COVID-19 year, the investments in non-liquid assets were 7.6% smaller, while liquidity ratios increased by 2.3 percentage points. Originality / value of the article: Papers on the influence of negative interest rates and of COVID-19 on European firms are unavailable. This makes the paper relevant for firm managers and policy makers and a benchmark for future research. Implications of the research: Because the issues addressed are new, further research is valuable. One may think of comparable studies for different countries. Many other suggestions for further research are given in the conclusions.
- Źródło:
-
Central European Review of Economics and Management; 2021, 5, 4; 117-143
2543-9472 - Pojawia się w:
- Central European Review of Economics and Management
- Dostawca treści:
- Biblioteka Nauki
Artykuł