IDEAS home Printed from https://ideas.repec.org/a/wly/jmoncb/v58y2026i4p1167-1199.html

Cheap U.S. Dollar Credit: Panacea or Poison? Firm‐Level Evidence from Emerging Markets

Author

Listed:
  • XIAO WANG
  • STEVE PAK YEUNG WU
  • HAICHUN YE

Abstract

Using firm‐level data from emerging markets, we find that the dollar debt issuance significantly increases issuers’ risk‐taking. While the dollar debt issuance significantly increases issuers’ investment spending, it reduces their investment efficiency substantially. We also show that macroprudential policies can help mitigate the risk‐taking effect of dollar debt issuance. In addition, we provide evidence that nonissuers exhibit increased risk‐taking when faced with rising intraindustry competition pressure from issuers. Overall, the cross‐sectional risk distributions at the industry level are more tilted toward the downside.

Suggested Citation

  • Xiao Wang & Steve Pak Yeung Wu & Haichun Ye, 2026. "Cheap U.S. Dollar Credit: Panacea or Poison? Firm‐Level Evidence from Emerging Markets," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 58(4), pages 1167-1199, June.
    • Handle: RePEc:wly:jmoncb:v:58:y:2026:i:4:p:1167-1199
    DOI: 10.1111/jmcb.13238
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jmcb.13238
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jmcb.13238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jmoncb:v:58:y:2026:i:4:p:1167-1199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.