Abstract

http://ssrn.com/abstract=1407724
 
 

Citations (7)



 


 



Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations


C. Hoyt Bleakley


University of Chicago - Booth School of Business; University of Chicago

Kevin Cowan


Central Bank of Chile

May 18, 2009

Chicago Booth Research Paper No. 09-18

Abstract:     
Substantial attention has been paid in recent years to the risk of maturity mismatch in emerging markets. Although this risk is micro economic in nature, the evidence advanced thus far has taken the form of macro correlations. We evaluate this mechanism empirically at the micro level by using a database of over 3,000 publicly traded firms from fifteen emerging markets. We measure the risk of maturity mismatch by estimating, at the firm level, the effect on investment of the interaction of short-term exposure and aggregate capital flight. This effect is (statistically) zero, contrary to the prediction of the maturity-mismatch hypothesis. This conclusion is robust to using a variety of different estimators, alternative measures of capital flows, and controls for devaluation effects and access to international capital. We do find evidence that short-term-exposed firms pay higher financing costs, and have lower equity valuations, but not that this reduction in net worth translates into a drop in investment or sales.

Number of Pages in PDF File: 64

Keywords: maturity mismatch, investment, financial crises

JEL Classification: E22, F41, G31, G32

working papers series


Download This Paper

Date posted: May 22, 2009  

Suggested Citation

Bleakley, C. Hoyt and Cowan, Kevin, Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations (May 18, 2009). Chicago Booth Research Paper No. 09-18. Available at SSRN: http://ssrn.com/abstract=1407724 or http://dx.doi.org/10.2139/ssrn.1407724

Contact Information

C. Hoyt Bleakley (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
University of Chicago ( email )
1101 East 58th Street
Chicago, IL 60637
United States
Kevin Cowan
Central Bank of Chile ( email )
Agustinas 1180
Santiago
Chile
Feedback to SSRN


Paper statistics
Abstract Views: 1,256
Downloads: 205
Download Rank: 48,734
Citations:  7
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.234 seconds