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The paper shows how-in a Merton-type model with bankruptcy-the currency composition of debt changes the risk profile of … a company raising a given amount of financing, and thus affects the cost of debt. Foreign currency borrowing is cheaper … ""natural hedges"" of their foreign currency exposures …
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Intro -- Contents -- I. INTRODUCTION -- II. WHY IS THERE A NEED FOR INTERNATIONAL MONEY? -- III. CONCEPTUAL FRAMEWORK …-FACTORS THAT FACILITATE INTERNATIONAL CURRENCY STATUS -- IV. REASONS FOR THE DIFFERENT VIEWS -- V. EMPIRICAL EVIDENCE TO DATE -- VI …
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Studying a large number of banks in various countries between 1999 and 2006, we document that foreign banks perform better when from a high income country, when host country competition is limited, and when they are large and rely more on deposits for funding. Foreign banks' performance improves...
Persistent link: https://www.econbiz.de/10012677516
Mercosur? The objective of this paper is to answer this question by analyzing changes in bank behavior after crises in the … literature-to post-crisis bank behavior. Using a panel dataset of commercial banks during the period 1990-2006, we analyze the … impact of crises on four sets of financial indicators of bank behavior-profitability, maturity preference …
Persistent link: https://www.econbiz.de/10012677530