We study how shocks to corporate leverage alter the macroeconomic transmission of monetary policy. We identify leverage …-frequency identified monetary policy shocks, we find that transmission to the price level strengthens in the presence of leverage shocks … devaluation channel. Economies experiencing an increase in leverage exhibit a stronger monetary policy-induced contraction in …

This study examines the moderating function of corporate governance (CG) to the relationship between leverage and firm … manage endogeneity problems. The findings show a meaningful negative relationship between leverage and FV. This relationship …, however, disappears, when the interaction variable of leverage × CG is included in the econometric model. These results …