Abstract

http://ssrn.com/abstract=672781
 
 

References (23)



 
 

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


Inter-American Development Bank (IDB)

December 17, 2004

UCSD Discussion Paper No. 2004-16

Abstract:     
Substantial attention has been paid in recent years to the risk of maturity mismatch in emerging markets. Although this risk is microeconomic 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 3000 publicly traded firms from fifteen emerging markets. We measure the risk of short-term exposure by estimating, at the firm level, the effect on investment of the interaction of short-term exposure and aggregate capital flows. 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 liquidate assets at "fire sale" prices, but not that this reduction in net worth translates into a drop in investment.

Number of Pages in PDF File: 49

Keywords: maturity mismatch, investment, financial crises

JEL Classification: E22, F41, G31, G32

working papers series


Download This Paper

Date posted: February 28, 2005  

Suggested Citation

Bleakley, C. Hoyt and Cowan, Kevin, Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations (December 17, 2004). UCSD Discussion Paper No. 2004-16. Available at SSRN: http://ssrn.com/abstract=672781 or http://dx.doi.org/10.2139/ssrn.672781

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
Inter-American Development Bank (IDB) ( email )
1300 New York Avenue NW
Washington, DC 20577
United States
202-623-2607 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 925
Downloads: 108
Download Rank: 48,322
References:  23
Citations:  7

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.579 seconds