TY - JOUR
T1 - Monetary policy as market stabilizer in the COVID-19 pandemic
AU - Xiao, Yajun
AU - Chen, Yang
AU - Shan, Yimin
N1 - Funding Information:
Yimin Shan is at International Business School Suzhou, Xi'an Jiaotong-Liverpool University (Email: yimin.shan18@student.xjtlu.edu.cn). Yang Chen is at International Business School Suzhou, Xi'an Jiaotong-Liverpool University (Email: yang.chen@xjtlu.edu.cn). We thank the comments provided by the editor, the referee, and the participants at the CoME-IBSS Annual Workshop jointly organized by Tianjin University and Xi'an Jiaotong-Liverpool University in 2023. This paper is funded by Research Development Grant RDF-21-02-002 from Xi'an Jiaotong-Liverpool University.
Funding Information:
Yimin Shan is at International Business School Suzhou, Xi'an Jiaotong-Liverpool University (Email: yimin.shan18@student.xjtlu.edu.cn). Yang Chen is at International Business School Suzhou, Xi'an Jiaotong-Liverpool University (Email: yang.chen@xjtlu.edu.cn). We thank the comments provided by the editor, the referee, and the participants at the CoME-IBSS Annual Workshop jointly organized by Tianjin University and Xi'an Jiaotong-Liverpool University in 2023. This paper is funded by Research Development Grant RDF-21-02-002 from Xi'an Jiaotong-Liverpool University.
Publisher Copyright:
© 2023 Elsevier Inc.
PY - 2023/7
Y1 - 2023/7
N2 - We categorize expansionary monetary policies based on interest rates, monetary easing, and liquidity decisions. We find that the stock market reacts positively to liquidity policy announcements by a more significant margin during and after the COVID-19 at market and industry levels compared with reactions to interest rate or monetary easing policy announcements. The economic consequences are large and persistent. Using firm characteristics as proxies for monetary policy transmission channels, we find that at firm level, the positive responses to liquidity policy announcements during the crisis are more pronounced for small and medium-sized businesses and non-state-owned enterprises relative to other enterprises.
AB - We categorize expansionary monetary policies based on interest rates, monetary easing, and liquidity decisions. We find that the stock market reacts positively to liquidity policy announcements by a more significant margin during and after the COVID-19 at market and industry levels compared with reactions to interest rate or monetary easing policy announcements. The economic consequences are large and persistent. Using firm characteristics as proxies for monetary policy transmission channels, we find that at firm level, the positive responses to liquidity policy announcements during the crisis are more pronounced for small and medium-sized businesses and non-state-owned enterprises relative to other enterprises.
KW - Chinese monetary policy
KW - Event study
KW - Monetary policy transmission channels
KW - Stock market
UR - http://www.scopus.com/inward/record.url?scp=85156113603&partnerID=8YFLogxK
U2 - https://doi.org/10.1016/j.frl.2023.103960
DO - https://doi.org/10.1016/j.frl.2023.103960
M3 - 文章
AN - SCOPUS:85156113603
SN - 1544-6123
VL - 55
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 103960
ER -