The Impact of Foreign Liabilities on Small Firms: Firm-Level Evidence from the Korean Crisis
Yun Jung Kim (),
Linda Tesar () and
Jing Zhang ()
No 17756, NBER Working Papers from National Bureau of Economic Research, Inc
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 firms' 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.
JEL-codes: E44 F32 F34 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Published as Kim, Yun Jung & Tesar, Linda L. & Zhang, Jing, 2015. "The impact of foreign liabilities on small firms: Firm-level evidence from the Korean crisis," Journal of International Economics, Elsevier, vol. 97(2), pages 209-230.
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 (2011)
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:nbr:nberwo:17756
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().