Financing Decisions of Firms and Central Bank Policy

Jacques Olivier () and Ai Ting Goh
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Jacques Olivier: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper aims to explain why unhedged foreign borrowing by South East Asian corporations rose sharply during the few years prior to the crisis despite little change in fundamentals. We show that decisions of firms and decisions of the central bank are complementary. Consequently, a small shock to fundamentals may have a large and permanent impact on the equilibrium composition of firms' borrowing.

Keywords: Foreign borrowing; Central bank; Asian crisis (search for similar items in EconPapers)
Date: 2004-11
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Citations: View citations in EconPapers (1)

Published in Journal of International Money and Finance, 2004, Vol.23,n°7-8, pp.1187-1207. ⟨10.1016/j.jimonfin.2004.09.002⟩

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Related works:
Journal Article: Financing decisions of firms and central bank policy (2004)
Working Paper: Financing Decisions of Firms and Central Bank Policy (2001)
Working Paper: Financing decisions of firms and central bank policy (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00460037

DOI: 10.1016/j.jimonfin.2004.09.002

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