Financial Crisis and Foreign Exchange Exposure of Korean Exporting Firms
AbstractDuring the Asian crisis, a rise in short-term for debt relative to short-term debt denominated in domestic currency results in a significant decline in negative exposure of Korean firms, with Chaebol firms able to benefit more. Exposure of non-Chaebol firms is significantly affected by maturity of debt. Results are consistent with recent work modeling firm level phenomena during financial crisis that emphasizes the importance of credit constraints, and with observations that exporting firms have significantly higher foreign debt ratios and eve of crisis export and foreign debt ratios are strongly correlated with growth in sales immediately after the crisis.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Missouri in its series Working Papers with number 0612.
Length: 52 pgs.
Date of creation: 28 Nov 2006
Date of revision:
Foreign exchange rate exposure; Foreign debt; Short term debt; Financial crisis; Credit rationing;
Find related papers by JEL classification:
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-13 (All new papers)
- NEP-IFN-2007-01-13 (International Finance)
- NEP-SEA-2007-01-13 (South East Asia)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Stratton).
If references are entirely missing, you can add them using this form.