The Impact of Foreign Liabilities on Small Firms: Firm-Level Evidence from the Korean Crisis
Yun Jung Kim (),
Linda Tesar () and
Jing Zhang ()
No 620, Working Papers from Research Seminar in International Economics, University of Michigan
Using Korean firm-level data on publicly-listed and privately-held firms together with firm exit data, we find strong evidence of the balance-sheet effect for small firms at both the intensive and extensive margins. During the crisis, small firms with more short-term foreign debt are more likely to go bankrupt, and experience larger sales declines conditional on survival. The extensive margin accounts for a large fraction of small firmsÕ adjustment during the crisis. Consistent with many studies in the literature, large firms with larger exposure to foreign debt paradoxically have better performance during the crisis at both the intensive and extensive margin.
Keywords: financial crisis; firm-level data; balance-sheet effects; Korean economy (search for similar items in EconPapers)
JEL-codes: E44 F32 F34 (search for similar items in EconPapers)
Pages: 47 pages
New Economics Papers: this item is included in nep-ifn and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: The impact of foreign liabilities on small firms: Firm-level evidence from the Korean crisis (2015)
Working Paper: The Impact of Foreign Liabilities on Small Firms: Firm-Level Evidence from the Korean Crisis (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mie:wpaper:620
Access Statistics for this paper
More papers in Working Papers from Research Seminar in International Economics, University of Michigan Contact information at EDIRC.
Bibliographic data for series maintained by FSPP Webmaster ().