IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2024-245.html
   My bibliography  Save this paper

The Role of Corporate Cash Holdings in the Transmission of Monetary Policy Tightening

Author

Listed:
  • Mr. JaeBin Ahn
  • Euihyun Bae
  • Jing Zhou

Abstract

The U.S. economy has been exceeding expectations amid one of the most aggressive monetary policy tightening cycles. This paper provides firm-level evidence showing that abundant cash holdings enable firms to benefit from higher interest rates, thereby reducing net interest payments and mitigate the adverse impact from interest rate hikes to firms' investment and employment.

Suggested Citation

  • Mr. JaeBin Ahn & Euihyun Bae & Jing Zhou, 2024. "The Role of Corporate Cash Holdings in the Transmission of Monetary Policy Tightening," IMF Working Papers 2024/245, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2024/245
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=558805
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2024/245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.