Publicação
On the effects of quantitative easing on share repurchases in the Us
| Resumo: | This paper analyses the effects of the Federal Reserve’s Quantitative Easing (QE) program on corporate share repurchases in the US between 2008 and 2021. Therefore, it differentiates between the unconventional monetary policy that is QE from standard policies including the Federal Funds Rate (FFR). To isolate the effects, the regression analysis takes into account several corporate finance hypotheses among share repurchases as well as seasonality. The results show that QE is positively correlated with share repurchases while FFR is negatively correlated in all regressions. Thus, this analysis provides evidence that QE positively affects share repurchases. It further finds that the impact QE has on shareholder distribution is similar to the impact a decrease in interest rates has. |
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| Autores principais: | Bachmann, Jens-Niklas |
| Assunto: | Corporate finance Monetary policy Quantitative easing Federal reserve Share repurchases Large-scale asset purchases |
| Ano: | 2022 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This paper analyses the effects of the Federal Reserve’s Quantitative Easing (QE) program on corporate share repurchases in the US between 2008 and 2021. Therefore, it differentiates between the unconventional monetary policy that is QE from standard policies including the Federal Funds Rate (FFR). To isolate the effects, the regression analysis takes into account several corporate finance hypotheses among share repurchases as well as seasonality. The results show that QE is positively correlated with share repurchases while FFR is negatively correlated in all regressions. Thus, this analysis provides evidence that QE positively affects share repurchases. It further finds that the impact QE has on shareholder distribution is similar to the impact a decrease in interest rates has. |
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