The impact of monetary shocks on investment: an analysis using accounting data and local projections

• Ano de defesa: 2024
• Autor(a) principal: Cavalcante, Bruno Luis Barbosa
• Orientador(a): Ribeiro, Marcel Bertini
• Tipo de documento: Dissertação
• Tipo de acesso: Acesso aberto
• Idioma: eng
• Palavras-chave em Português: Investimento; Dados em painel; Projeções locais; Estrutura de capital
• Palavras-chave em Inglês: Investiment; Panel data; Local projections; Capital structure
• Link de acesso: https://hdl.handle.net/10438/35728

This paper evaluates the impact of monetary shocks identified around the meetings of the Brazilian Monetary Policy Committee (COPOM) on firms’ investment and capital structure, using the local projections method in a panel data framework. The study found that the effect of monetary shocks on firms’ investment is heterogeneous and affects firms with higher liquidity more significantly. Firms with greater liquidity tend to reduce their short-term assets more in response to these shocks. The results demonstrate significantly different behavior between firms with low and high liquidity regarding debt structure. Firms adjust the magnitude and maturity of their debts in response to the shocks.