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Financial Liberalization and Corporate Debt Maturity in Thailand, 1993-97

Author

Listed:
  • Federico Guerrero

    () (Department of Economics, University of Nevada, Reno)

  • Elliott Parker

    () (Department of Economics, University of Nevada, Reno)

Abstract

Excessive short-term debt is thought to be one of the major causes of the Asian financial crisis, and this paper documents the changes in the maturity of corporate debt in Thailand during a period of rapid integration with international capital markets. Using data from publicly-traded Thai corporations for the period 1993-97, we find that the evidence is weak at best that financial liberalization brought about by globalization reduced the maturity of corporate debt contracts, and the evidence may in fact support an increase in maturity. This result casts some doubts on the generality of the idea that financial liberalization created the short-term debt problem.

Suggested Citation

  • Federico Guerrero & Elliott Parker, 2006. "Financial Liberalization and Corporate Debt Maturity in Thailand, 1993-97," Working Papers 06-001, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
  • Handle: RePEc:unr:wpaper:06-001
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    File URL: http://www.business.unr.edu/econ/wp/papers/UNRECONWP06001.pdf
    File Function: First version, 2006
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Globalization; financial liberalization; corporate debt maturity; Thailand;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F39 - International Economics - - International Finance - - - Other

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