EFFECTS OF SINGLE MONETARY POLICY ON FINANCIAL POSITION OF FIRMS IN THE SLOVAK REPUBLIC

The European Central Bank started to stimulate European economies in 2009 since the countries of the European Union have been facing a low growth and low inflation after both the global financial and sovereign debt crisis. The aim of the paper is to evaluate the effects of very low and negative interest rates on the financial position of manufacturing firms in the Slovak Republic using the balance sheet channel. The results confirm that firm-specific determinants affect the capital structure of firms. When assessing the impact of monetary policy on the financial structure in the environment of low interest rates, our findings support the existence of the balance sheet channel in the Slovak Republic, which is apparent in short-term structure.