Monetary Easing, Leveraged Payouts, and Lack of Investment

Published Online:https://doi.org/10.1287/mnsc.2022.01440

References

  • Abadi J, Brunnermeier MK, Koby Y (2023) The reversal interest rate. Amer. Econom. Rev. 113(8):2084–2120.CrossrefGoogle Scholar
  • Acharya VV, Naqvi H (2012a) Bank liquidity and bubbles: Why central banks should lean against liquidity. Evanoff D, Kaufman G, Malliaris AG, eds. New Perspectives on Asset Price Bubbles: Theory, Evidence and Policy (Oxford University Press, New York), 271–280.CrossrefGoogle Scholar
  • Acharya VV, Naqvi H (2012b) The seeds of a crisis: A theory of bank liquidity and risk taking over the business cycle. J. Financial Econom. 106(2):349–366.CrossrefGoogle Scholar
  • Almeida H, Fos V, Kronlund M (2016) The real effects of share repurchases. J. Financial Econom. 119(1):168–185.CrossrefGoogle Scholar
  • Baker M, Wurgler J (2002) Market timing and capital structure. J. Finance 57(1):1–32.CrossrefGoogle Scholar
  • Benmelech E, Bergman NK (2012) Credit traps. Amer. Econom. Rev. 102(6):3004–3032.CrossrefGoogle Scholar
  • Bens DA, Nagar V, Skinner DJ (2003) Employee stock options, EPS dilution, and stock repurchases. J. Accounting Econom. 36(1–3):51–90.CrossrefGoogle Scholar
  • Bolton P, Santos T, Scheinkman JA (2021) Savings gluts and financial fragility. Rev. Financial Stud. 34(3):1408–1444.Google Scholar
  • Boyarchenko N, Kovner A, Shachar O (2022) It’s what you say and what you buy: A holistic evaluation of the corporate credit facilities. J. Financial Econom. 144(3):695–731.CrossrefGoogle Scholar
  • Brav A, John GR, Campbell HR, Michaely R (2005) Payout policy in the 21st century. J. Financial Econom. 77(3):483–527.CrossrefGoogle Scholar
  • Brockman P, Chung DY (2001) Managerial timing and corporate liquidity: Evidence from actual share repurchases. J. Financial Econom. 61(3):417–448.CrossrefGoogle Scholar
  • Buchak G, Matvos G, Piskorski T, Seru A (2024) Beyond the balance sheet model of banking: Implications for bank regulation and monetary policy. J. Political Econom. 132(2):616–693.Google Scholar
  • Caballero RJ, Simsek A (2020) A risk-centric model of demand recessions and speculation. Quart. J. Econom. 135(3):1493–1566.Google Scholar
  • Coimbra N, Rey H (2024) Financial cycles with heterogeneous intermediaries. Rev. Econom. Stud. 91(2):817–857.CrossrefGoogle Scholar
  • Crouzet N, Eberly J, Eisfeldt A, Papanikolaou D (2022) The economics of intangible capital. J. Econom. Perspect. 36(3):29–52.CrossrefGoogle Scholar
  • Dell’Ariccia G, Laeven L, Marquez R (2014) Real interest rates, leverage, and bank risk-taking. J. Econom. Theory 149:65–99.CrossrefGoogle Scholar
  • Diamond DW, Rajan RG (2012) Illiquid banks, financial stability, and interest rate policy. J. Political Econom. 120(3):552–591.CrossrefGoogle Scholar
  • Dittmar AK, Dittmar RF (2008) The timing of financing decisions: An examination of the correlation in financing waves. J. Financial Econom. 90(1):59–83.CrossrefGoogle Scholar
  • Elgouacem A, Zago R (2023) Share buybacks, monetary policy and the cost of debt. Internat. J. Central Banking 19(2).Google Scholar
  • Fabiani A, Falasconi L, Heineken J (2021) Monetary policy and corporate debt maturity. Working paper, Bank of Italy, Rome.Google Scholar
  • Farhi E, Tirole J (2012) Collective moral hazard, maturity mismatch, and systemic bailouts. Amer. Econom. Rev. 102(1):60–93.CrossrefGoogle Scholar
  • Farre-Mensa J, Michaely R, Schmalz M (2024) Financing payouts. J. Financial Quant. Anal. 1–39.Google Scholar
  • Foley-Fisher N, Ramcharan R, Yu D (2016) The impact of unconventional monetary policy on firm financing constraints: Evidence from the maturity extension program. J. Financial Econom. 122(2):409–429.CrossrefGoogle Scholar
  • Furman J (2015) Business investment in the United States: Facts, explanations, puzzles, and policies. Council of Economic Advisers. Remarks at the Progressive Policy Institute, Washington, DC.Google Scholar
  • Grosse-Rueschkamp B, Steffen S, Streitz D (2019) A capital structure channel of monetary policy. J. Financial Econom. 133(2):357–378.CrossrefGoogle Scholar
  • Hayek FA (1931) Prices and Production (Augustus M. Kelley Publishers, New York).Google Scholar
  • Holmström B (1979) Moral hazard and observability. Bell J. Econom. 10(1):74–91.CrossrefGoogle Scholar
  • Hribar P, Jenkins NT, Johnson WB (2006) Stock repurchases as an earnings management device. J. Accounting Econom. 31(1–2):3–27.CrossrefGoogle Scholar
  • Ikenberry D, Lakonishok J, Vermaelen T (1995) Market underreaction to open market share repurchases. J. Financial Econom. 3(2–3):181–208.CrossrefGoogle Scholar
  • Innes RD (1990) Limited liability and incentive contracting with ex-ante action choices. J. Econom. Theory 52(1):45–67.CrossrefGoogle Scholar
  • International Monetary Fund (2017) Getting the policy mix right. Report, Global Financial Stability Report, April 2017, IMF, Washington, DC.Google Scholar
  • International Monetary Fund (2019) Vulnerabilities in a maturing credit cycle. Report, Global Financial Stability Report, April 2019, IMF, Washington, DC.Google Scholar
  • Jungherr J, Meier M, Reinelt T, Schott I (2024) Corporate debt maturity matters for monetary policy. International Finance Discussion Papers 1402, Board of Governors of the Federal Reserve System, Washington, DC.Google Scholar
  • Kahle KM, Stulz RM (2021) Why are corporate payouts so high in the 2000s? J. Financial Econom. 142(3):1359–1380.CrossrefGoogle Scholar
  • Kuttner K (2000) Monetary policy surprises and interest rates: Evidence from the Fed funds futures market. J. Monetary Econom. 47(3):523–544.CrossrefGoogle Scholar
  • Ma Y (2019) Nonfinancial firms as cross-market arbitrageurs. J. Finance 74(6):3041–3087.CrossrefGoogle Scholar
  • Martinez-Miera D, Repullo R (2017) Search for yield. Econometrica 85(2):351–378.CrossrefGoogle Scholar
  • Martinez-Miera D, Repullo R (2020) Interest rates, market power, and financial stability. Working paper, Charles III University of Madrid, Getafe, Spain; Center for Economic Policy Research, Washington, DC.Google Scholar
  • Mota L (2021) The corporate supply of (quasi) safe assets. Working paper, Massachusetts Institute of Technology, Cambridge.Google Scholar
  • Myers SC (1977) Determinants of corporate borrowing. J. Financial Econom. 5(2):147–175.CrossrefGoogle Scholar
  • Peters RH, Taylor LA (2017) Intangible capital and the investment-q relation. J. Financial Econom. 123(2):251–272.CrossrefGoogle Scholar
  • Peyer U, Vermaelen T (2009) The nature and persistence of buyback anomalies. Rev. Financial Stud. 22(4):1693–1745.CrossrefGoogle Scholar
  • Rajan RG (2013) A step in the dark: Unconventional monetary policy after the crisis. Andrew Crockett Memorial Lecture, Bank for International Settlements, Basel, Switzerland.Google Scholar
  • Stein JC (2012) Monetary policy as financial-stability regulation. Quart. J. Econom. 127(1):57–95.CrossrefGoogle Scholar
  • Stein JC (2013) Overheating in credit markets: Origins, measurement, and policy responses. Speech delivered at the “Restoring Household Financial Stability after the Great Recession: Why Household Balance Sheets Matter” research symposium sponsored by the Federal Reserve Bank of St. Louis, St. Louis, Missouri.Google Scholar
  • Todorov K (2020) Quantify the quantitative easing: Impact on bonds and corporate debt issuance. J. Financial Econom. 135(2):340–358.CrossrefGoogle Scholar
  • Vermaelen T (1981) Common stock repurchases and market signalling: An empirical study. J. Financial Econom. 9(2):139–183.CrossrefGoogle Scholar
  • Wang O (2019) Banks, low interest rates, and monetary policy transmission. Working paper, New York University Stern School of Business, New York.Google Scholar
  • Woodford M (2001) Fiscal requirements for price stability. J. Money Credit Banking 33(3):669–728.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.