benefits of large depreciations. Investment specifications indicate that increases in leverage resulting from sharp …

political risk borne by parent companies leads them to use less domestic leverage, resulting in lower firm-wide leverage …. Multinational firms with above-average exposures to politically risky countries have 8.4 percent less domestic leverage than do …

, vertical linkages with foreign firms, and international trade on several types of innovation by domestic firms. Using … and innovation and show that the supply chain of multinational enterprises and international trade are also important … channels. There is no evidence for an inverted U relationship between innovation and foreign competition. The relationship …

The post-Global Financial Crisis period shows a surge in corporate leverage in emerging markets and a number of … relationship between leverage, firm fragility and exchange rate movements in emerging markets. While the relationship between firm-leverage …

We quantify the effect of exchange rate fluctuations on firm leverage. When home currency appreciates, firms who hold … currency debt. These firms can borrow more as a result and increase their leverage. When home currency depreciates, the reverse … happens as firms have to de-lever with a negative shock to their balance sheets. Using firm-level data for leverage from 10 …

This paper documents a set of new stylized facts about leverage and financial fragility for emerging market firms … in the "vulnerable" range of Altman's Z-score, and average leverage for the entire emerging market sample is higher in … the post-GFC period than during the AFC. Regression estimates suggest that the relationship between leverage, exchange …