EconPapers    
Economics at your fingertips  
 

Maturity mismatch and financial crises: evidence from emerging market corporations

Hoyt Bleakley and Kevin Cowan ()

Proceedings, 2005

Abstract: Substantial attention has been paid in recent years to the risk of maturity mismatch in emerging markets. Although this risk is microeconomic in nature, the evidence advanced thus far has taken the form of macro correlations. We evaluate this mechanism empirically at the micro level by using a database of over 3000 publicly traded firms from fifteen emerging markets. We measure the risk of short-term exposure by estimating, at the firm level, the effect on investment of the interaction of short-term exposure and aggregate capital flows. This effect is (statistically) zero, contrary to the prediction of the maturity-mismatch hypothesis. This conclusion is robust to using a variety of different estimators, alternative measures of capital flows, and controls for devaluation effects and access to international capital. We do find evidence that short-term exposed firms pay higher financing costs and liquidate assets at ?fire sale? prices, but not that this reduction in net worth translates into a drop in investment.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://www.frbsf.org/wp-content/uploads/paper-bleakly.pdf Full Text (text/html)

Related works:
Journal Article: Maturity mismatch and financial crises: Evidence from emerging market corporations (2010) Downloads
Working Paper: Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations (2005) Downloads
Working Paper: Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations (2005) Downloads
Working Paper: Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfpr:y:2005:x:20

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Proceedings from Federal Reserve Bank of San Francisco Contact information at EDIRC.
Bibliographic data for series maintained by Federal Reserve Bank of San Francisco Research Library ().

 
Page updated 2025-03-19
Handle: RePEc:fip:fedfpr:y:2005:x:20