The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms
The aim of this paper is to examine whether the policy of low interest rates and exchange rate commitment of the Czech National Bank affected the competitiveness of non-financial firms in the Czech Republic in the sectors of agriculture, construction and manufacturing. Panel techniques are employ...
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Format: | Article |
Language: | English |
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University of Finance and Administration
2018-03-01
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Series: | ACTA VŠFS |
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Online Access: | https://www.vsfs.cz/periodika/acta-2018-1-02.pdf |
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author | Veronika Kajurova Dagmar Linnertova |
author_facet | Veronika Kajurova Dagmar Linnertova |
author_sort | Veronika Kajurova |
collection | DOAJ |
description | The aim of this paper is to examine whether the policy of low interest rates and exchange
rate commitment of the Czech National Bank affected the competitiveness of non-financial
firms in the Czech Republic in the sectors of agriculture, construction and manufacturing.
Panel techniques are employed to investigate the impact of monetary policy on selected
indicators of firms’ competitiveness, measured by financial performance in this study. Size
and sectoral characteristics are reflected when analysing the impact of monetary policy.
The empirical evidence is based on firm-level data from the Amadeus database for the
period between 2006 and 2015. Evaluating monetary policy effects on the whole sample,
our empirical evidence suggested that the competitiveness of Czech firms measured by
indicators of financial performance increases. The results vary among profitability ratios,
but the highest influence was investigated for the ROE ratio. We found that monetary
policy affected firm-specific characteristics, and firm-specific variables in interaction
with monetary policy affected competitiveness of firms. FX interventions were also
a significant factor in competitiveness in all cases. |
first_indexed | 2024-12-23T20:58:59Z |
format | Article |
id | doaj.art-8e0809ae73394fedaf69aa844934da61 |
institution | Directory Open Access Journal |
issn | 1802-792X 1802-7946 |
language | English |
last_indexed | 2024-12-23T20:58:59Z |
publishDate | 2018-03-01 |
publisher | University of Finance and Administration |
record_format | Article |
series | ACTA VŠFS |
spelling | doaj.art-8e0809ae73394fedaf69aa844934da612022-12-21T17:31:25ZengUniversity of Finance and AdministrationACTA VŠFS1802-792X1802-79462018-03-011214373The Impact of Loose Monetary Policy on the Competitiveness of Czech FirmsVeronika Kajurova0Dagmar Linnertova1Mendel University in Brno, Faculty of Business and EconomicsMasaryk University, Faculty of Economics and AdministrationThe aim of this paper is to examine whether the policy of low interest rates and exchange rate commitment of the Czech National Bank affected the competitiveness of non-financial firms in the Czech Republic in the sectors of agriculture, construction and manufacturing. Panel techniques are employed to investigate the impact of monetary policy on selected indicators of firms’ competitiveness, measured by financial performance in this study. Size and sectoral characteristics are reflected when analysing the impact of monetary policy. The empirical evidence is based on firm-level data from the Amadeus database for the period between 2006 and 2015. Evaluating monetary policy effects on the whole sample, our empirical evidence suggested that the competitiveness of Czech firms measured by indicators of financial performance increases. The results vary among profitability ratios, but the highest influence was investigated for the ROE ratio. We found that monetary policy affected firm-specific characteristics, and firm-specific variables in interaction with monetary policy affected competitiveness of firms. FX interventions were also a significant factor in competitiveness in all cases.https://www.vsfs.cz/periodika/acta-2018-1-02.pdfcompetitivenessfnancial performanceforeign exchange rate interventionslow interest ratesmonetary policy |
spellingShingle | Veronika Kajurova Dagmar Linnertova The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms ACTA VŠFS competitiveness fnancial performance foreign exchange rate interventions low interest rates monetary policy |
title | The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms |
title_full | The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms |
title_fullStr | The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms |
title_full_unstemmed | The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms |
title_short | The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms |
title_sort | impact of loose monetary policy on the competitiveness of czech firms |
topic | competitiveness fnancial performance foreign exchange rate interventions low interest rates monetary policy |
url | https://www.vsfs.cz/periodika/acta-2018-1-02.pdf |
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