Monetary Policy, Corporate Finance, and Investment

Abstract In response to a change in interest rates, younger firms not paying dividends adjust both their capital expenditure and borrowing significantly more than older firms paying dividends. The reason is that the debt of younger non-dividend payers is far more sensitive to fluctuations in collate...

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Bibliographic Details
Published in:Journal of the European Economic Association 2023-12, Vol.21 (6), p.2586-2634
Main Authors: Cloyne, James, Ferreira, Clodomiro, Froemel, Maren, Surico, Paolo
Format: Article
Language:English
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