Corporate failures and the denomination of corporate bonds: Evidence from emerging Asian economies over two financial crises

Marina-Eliza Spaliara and Serafeim Tsoukas

Journal of International Financial Markets, Institutions and Money, 2017, vol. 46, issue C, 84-97

Abstract: Using a novel financial data-set which covers an extensive time period between 1995 to 2012, we test for the impact of currency denomination of bonds on Asian firms’ survival probabilities. Our data span two financial crises: the 1997–98 Asian crisis and the 2007–09 global financial crisis. We find that during the former crisis firms with foreign currency denominated bonds face a higher probability of failure compared to firms with domestic bonds. On the other extreme, we find no notable differences between the 2007–09 financial crisis and tranquil times for both domestic and foreign issuers.

Keywords: Firm survival; Bond financing; Domestic and foreign currency debt; Financial crises (search for similar items in EconPapers)
JEL-codes: E30 F32 F34 G15 L20 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:46:y:2017:i:c:p:84-97

DOI: 10.1016/j.intfin.2016.08.005

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