The Role of Bond Finance in Firms' Survival During the Asian Crisis

Marina-Eliza Spaliara and Serafeim Tsoukas

No 32010, Working Papers from Hong Kong Institute for Monetary Research

Abstract: In this paper we assess the effects of bond financing on firms' survival during the 1997-98 Asian crisis. Using a novel database covering the period 1995 to 2007 for five Asian economies most affected by the crisis - Indonesia, Korea, Malaysia, Singapore and Thailand - we find strong evidence that the Asian crisis affected both directly and indirectly (through interactions with financial indicators) the probability of survival. More importantly, we show that bond issuers, irrespective of the currency denomination, are more likely to survive compared to non-issuers. Nevertheless, only firms issuing bonds in local currency are shielded from the adverse effects of the crisis.

Keywords: Bond Financing; Financial Crisis; Firm Survival; East Asia (search for similar items in EconPapers)
JEL-codes: F32 F34 G15 L20 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-02
New Economics Papers: this item is included in nep-cfn, nep-fmk, nep-mic and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: The role of bond finance in firms' survival during the Asian crisis (2009)
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