[Séminaire Eat and Think] Heterogeneous macroprudential policies and corporate financing decisions. - IGR-IAE Rennes

Abstract :
This study investigates how macroprudential policies affect corporate financing decisions. Using data comprising 31,336 listed non-financial firms worldwide, we find that macroprudential policy shortens corporate debt maturity structure and limits corporate ability to undertake long-term debt. Findings highlight the dual transmission channels of macroprudential policy, with supply-side instruments predominantly impacting long-term debt and demand-side instruments affecting short-term debt. Our results demonstrate that the effectiveness of macroprudential policies is highly heterogeneous. Firms facing binding financial constraints, operating in highly competitive industries, or located in countries with weak institutional frameworks experience more pronounced adverse effects. In contrast, firms in more developed financial systems and institutional environments show greater resilience. During periods of U.S. monetary tightening, these effects are moderated, reflecting global spillovers of the Fed’s policy. These findings underscore the need for context-specific macroprudential design to balance financial stability goals with real economic activity.