Version 1
: Received: 15 February 2024 / Approved: 16 February 2024 / Online: 16 February 2024 (07:51:04 CET)
How to cite:
Kuo, K.; Lu, W.; Cheng, C. Exploring the Impact of Quantitative Easing Policy on the Business Performance of Construction Companies with the Debt Ratio as a Moderator. Preprints2024, 2024020874. https://doi.org/10.20944/preprints202402.0874.v1
Kuo, K.; Lu, W.; Cheng, C. Exploring the Impact of Quantitative Easing Policy on the Business Performance of Construction Companies with the Debt Ratio as a Moderator. Preprints 2024, 2024020874. https://doi.org/10.20944/preprints202402.0874.v1
Kuo, K.; Lu, W.; Cheng, C. Exploring the Impact of Quantitative Easing Policy on the Business Performance of Construction Companies with the Debt Ratio as a Moderator. Preprints2024, 2024020874. https://doi.org/10.20944/preprints202402.0874.v1
APA Style
Kuo, K., Lu, W., & Cheng, C. (2024). Exploring the Impact of Quantitative Easing Policy on the Business Performance of Construction Companies with the Debt Ratio as a Moderator. Preprints. https://doi.org/10.20944/preprints202402.0874.v1
Chicago/Turabian Style
Kuo, K., Wen-Min Lu and Ching-Hsiang Cheng. 2024 "Exploring the Impact of Quantitative Easing Policy on the Business Performance of Construction Companies with the Debt Ratio as a Moderator" Preprints. https://doi.org/10.20944/preprints202402.0874.v1
Abstract
During the 2008 financial crisis, central banks (such as the Fed) adopted quantitative easing (QE) policy to stimulate their economies and overcome severe economic and financial recessions. However, apart from stimulating the economy by issuing a substantial amount of currency to purchase long-term bonds and suppress interest rates, QE policy also contributed to a boom in the real estate and construction sectors. Therefore, this study employs Data Envelopment Analysis to measure the business performance (BP) of construction companies and explores the impact of QE policy on the BP of construction companies between 2004 and 2015 using ordinary least squares regression. Also, we examine the moderating role of debt ratio on the relationship. Focused on publicly listed construction companies in Taiwan, this research reveals three encouraging find-ings. Firstly, QE policy indeed enhanced the BP of Taiwanese construction companies. Secondly, the performance improvement of construction companies due to QE policy shows a time-diminishing trend, suggesting the importance of seizing the initial policy benefits of QE implementation. Lastly, construction companies with appropriate financial leverage may exhibit better BP. These findings can provide valuable insights for relevant government entities and de-cision-makers in the industry for policy and investment decisions.
Keywords
Quantitative Easing Policy; Construction Companies; Data Envelopment Analysis; Time Lag; Moderator
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
