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Corporate QE in Europe during the COVID-19 crisis and debt overhang

dc.contributor.authorDemirgüç-Kunt, A.
dc.contributor.authorHorváth, B.L.
dc.contributor.authorHuizinga, H.
dc.date.accessioned2024-08-18T05:33:18Z
dc.date.available2024-08-18T05:33:18Z
dc.date.issued2023-07
dc.identifier.citationDemirgüç-Kunt, A., Horváth, B. L., & Huizinga, H. (2023). Corporate QE in Europe during the COVID-19 crisis and debt overhang. Journal of International Money and Finance, 135, 102855.
dc.identifier.issn0261-5606
dc.identifier.doi10.1016/j.jimonfin.2023.102855
dc.identifier.urihttp://hdl.handle.net/10150/674543
dc.description.abstractThis paper finds that shareholders of highly leveraged firms benefit relatively less compared to bondholders from the corporate QE announcements by the ECB and the Bank of England, 2020, as evidence of debt overhang. Firms more heavily impacted by the pandemic gain less from corporate QE, which could also reflect debt overhang. The monetary and fiscal responses to the pandemic are complements in the sense that a stronger pandemic-related fiscal response and higher pre-announcement sovereign CDS spreads enhance the positive effects of corporate QE on equity and debt valuations. © 2023 The Authors
dc.language.isoen
dc.publisherElsevier Ltd
dc.rights© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/).
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectDebt overhang
dc.subjectPandemic
dc.subjectQuantitative easing
dc.titleCorporate QE in Europe during the COVID-19 crisis and debt overhang
dc.typeArticle
dc.typetext
dc.contributor.departmentUniversity of Arizona
dc.identifier.journalJournal of International Money and Finance
dc.description.noteOpen access article
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.
dc.eprint.versionFinal Published Version
dc.source.journaltitleJournal of International Money and Finance
refterms.dateFOA2024-08-18T05:33:18Z


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© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/).
Except where otherwise noted, this item's license is described as © 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/).