Corporate Failures and the Denomination of Corporate Bonds: Evidence from Emerging Asian Economies Over Two Financial Crises

31 Pages Posted: 4 Oct 2015

See all articles by Marina‐Eliza Spaliara

Marina‐Eliza Spaliara

University of Glasgow - Adam Smith Business School

Serafeim Tsoukas

University of Glasgow

Date Written: October 3, 2015

Abstract

Using a novel financial data-set which covers an extensive time period between 1995-2012, we test for the impact of currency denomination of bonds on Asian firms' survival probabilities. Our data span two financial crises: the 1997-98 Asian crisis and the 2007-09 global financial crisis. We find that during the former crisis firms with foreign currency denominated bonds face a higher probability of failure compared to firms with domestic bonds. On the other extreme, we find no notable differences between the 2007-09 financial crisis and tranquil times for both domestic and foreign issuers.

Keywords: Firm survival, Bond financing, Domestic and foreign currency debt, Financial crises

JEL Classification: F32, F34, G15, L20

Suggested Citation

Spaliara, Marina-Eliza and Tsoukas, Serafeim, Corporate Failures and the Denomination of Corporate Bonds: Evidence from Emerging Asian Economies Over Two Financial Crises (October 3, 2015). Available at SSRN: https://ssrn.com/abstract=2668938 or http://dx.doi.org/10.2139/ssrn.2668938

Marina-Eliza Spaliara

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

Serafeim Tsoukas (Contact Author)

University of Glasgow ( email )

Adam Smith Business School
Glasgow, Scotland G12 8LE
United Kingdom

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