Quotation Poyntner, Philipp. 2018. The effects of the ECB's corporate quantitative easing on European firms . 6th WU-Workshop in Applied Econometrics (WUWAETRIX-VI), Wien, Österreich, 20.06.


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Abstract

The European Central Bank (ECB) announced in March 2016 the plan to include securities from the corporate sector in their Asset Purchasing Program (APP). Apart from the relatively ample eligibility criteria, little is known about what exactly determines which bonds are actually purchased by the ECB. To this end, the paper aims to link the information about the purchased bonds available from the ECB since 2017 to the company database ORBIS. In a descriptive analysis, light should be shed on the company determinants which lead the ECB to buy bonds, e.g. economic sector, turnover, employment, debt etc. Recent research documented that the programme had several effects on the financing structures of firms, mainly due to the lower cost and increased supply of capital for eligible firms: Apart frpm financing structures, the research on effects of the CSPP on firms is relatively thin. One of the reasons is data availability. Until recently, only high-frequency financial data or aggregate data has been available, whereas microdata on firm level takes longer to be available. Additionally to the descriptive analysis mentioned above, the paper aims to close this gap using information from the ORBIS database. The database has a comprehensive coverage of nearly all companies in the countries of interest, and offers a large variety of variables to be included in research. With corporate QE, the ECB aims to strengthen the financing conditions of the Eurozone's economy as well as the pass-through of unconditional monetary policy interventions. The empirical analysis addresses the question whether the improvement of financing conditions resulted in better performance of firms, such as employment and investment. The direct effect of the CSPP on firms which bonds are actually bought by the ECB can be assessed by matching techniques that compare those firms with similar firms whose bonds have not been acquired by the ECB.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title The effects of the ECB's corporate quantitative easing on European firms
Event 6th WU-Workshop in Applied Econometrics (WUWAETRIX-VI)
Year 2018
Date 20.06.
Country Austria
Location Wien

Associations

People
Poyntner, Philipp (Details)
Organization
Institute for International Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5323 Econometrics (Details)
5341 Economic policy (Details)
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