Prati, Alessandro; Schindler, Martin; Valenzuela, Patricio - In: Journal of International Money and Finance 31 (2012) 6, pp. 1649-1673
Using a novel panel data set on corporate foreign-currency credit ratings and capital account restrictions in advanced and emerging economies during 1995–2004, we find a strong positive effect of capital account liberalization on firms' credit risk, as measured by corporate credit ratings. As...