• Jaspal Kahlon

monetary policy transmission and corporate behavior

I am currently reviewing literature on relationship between corporate finance and monetary policy transmission. By corporate finance I mean the investment pattern of firms within a particular industry or size and their capital structure.

Credit channel theories explain the phenomenon via bank lending and balance sheet channel. An extension to the balance sheet channel was the broad channel of credit policy.

Observing the captial structure of Indian manufacturing firms one can conclude there is very little choice with firms to raise funds from untlil very recently.

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