External Financing Dependence and Corporate Saving in ASEAN5

Xin Li

No 2020/223, IMF Working Papers from International Monetary Fund

Abstract: Using firm-level data on ASEAN5, this paper studies the differential effects of macro-financial and structural factors on corporate saving behavior through the lens of external financing dependence. The finding suggests that non-financial corporations in ASEAN5 have been subject to binding financial constraints over the past two decades. Greater capital account openness or exchange rate depreciation reduces the average saving rate of industries with low dependence on external funds, while it increases the saving rate of industries with high dependence on external funds. The effects are greater for export-oriented industries. An improvement in banking sector competition, banks’ lending efficiency, or policy clarity is associated with lower saving rate of firms across the board.

Keywords: ASEAN countries; corporate saving; external financing need; export-orientation; financial constraint; capital account openness; exchange rate depreciation.; WP; saving rate; high-tech company; Level analysis; tech firm; firm's use; precautionary saving theory; saving behavior; use of external finance; exchange rate depreciation; Financial sector development; Commercial banks; Capital flows; Currencies; Precautionary savings; Global (search for similar items in EconPapers)
Pages: 41
Date: 2020-10-30
New Economics Papers: this item is included in nep-fdg and nep-sea
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=49768 (application/pdf)

Related works:
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:imf:imfwpa:2020/223

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().