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The Role of Bond Finance in Firms' Survival During the Asian Crisis


  • Marina-Eliza Spaliara

    (Loughborough University)

  • Serafeim Tsoukas

    (University of Nottingham, Hong Kong Institute for Monetary Research)


In this paper we assess the effects of bond financing on firms' survival during the 1997-98 Asian crisis. Using a novel database covering the period 1995 to 2007 for five Asian economies most affected by the crisis - Indonesia, Korea, Malaysia, Singapore and Thailand - we find strong evidence that the Asian crisis affected both directly and indirectly (through interactions with financial indicators) the probability of survival. More importantly, we show that bond issuers, irrespective of the currency denomination, are more likely to survive compared to non-issuers. Nevertheless, only firms issuing bonds in local currency are shielded from the adverse effects of the crisis.

Suggested Citation

  • Marina-Eliza Spaliara & Serafeim Tsoukas, 2010. "The Role of Bond Finance in Firms' Survival During the Asian Crisis," Working Papers 032010, Hong Kong Institute for Monetary Research.
  • Handle: RePEc:hkm:wpaper:032010

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    More about this item


    Bond Financing; Financial Crisis; Firm Survival; East Asia;

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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