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Corporate Investment in Emerging Markets : Financing vs. Real Options Channel
Li, Delong - 2016
We examine how firm and country heterogeneity shape the response of corporate investment in emerging markets to changes … the costs of external borrowing and (ii) a real options channel-reflecting firms' option values to delay investment. We … find evidence of the coexistence of both channels. Financially weaker firms reduce investment by more in response to higher …
Persistent link: https://www.econbiz.de/10012998802
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Sudden Stops in Emerging Economies : The Role of World Interest Rates and Foreign Exchange Intervention
Davis, Scott; Devereux, Michael; Yu, Changhua - 2022
Emerging economies are prone to ‘sudden stops’, characterized by a collapse in external borrowing and aggregate demand. Sudden stops may be triggered by a spike in world interest rates, which causes rapid private sector deleveraging. In response to a rise in interest rates, deleveraging is...
Persistent link: https://www.econbiz.de/10013308894
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Sudden Stops and Optimal Foreign Exchange Intervention
Institute for Monetary and Financial Research, Hong Kong - 2023
This working paper is written by J. Scott Davis (Federal Reserve Bank of Dallas), Michael B. Devereux (University of British Columbia) and Changhua Yu (Peking University).We model sudden stops in a small open economy as rare discrete events precipitated by increases in the world risk-free rate....
Persistent link: https://www.econbiz.de/10014256749
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Slowing growth : more than a rough patch
Kose, M. Ayhan; Ohnsorge, Franziska - 2023
Across the world, a structural growth slowdown is underway: at current trends, the global potential growth rate - the maximum rate at which an economy can grow without igniting inflation - is expected to fall to a three-decade low over the remainder of the 2020s. The slowdown could be even more...
Persistent link: https://www.econbiz.de/10014282834
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The Return of Expansionary Austerity : Firms’ Investment Response to Fiscal Adjustments in Emerging Markets
Magud, Nicolás E.; Pienknagura, Samuel - 2022
We study the response of corporate investment in Emerging Markets to unexpected fiscal shocks. We find that, although … firm-level investment decreases on impact following unexpected public expenditure adjustments (classical Keynesian … multiplier effect), it quickly rises above pre-shock levels. The rebound in investment is facilitated by fiscal space, flexible …
Persistent link: https://www.econbiz.de/10013291760
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Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging Markets
Chen, Feng - 2010
Prior research shows that financial reporting quality (FRQ) is positively related to investment efficiency for large U … research suggests that FRQ would be less conducive to the mitigation of investment inefficiencies. Earlier studies show that … positively affects investment efficiency. We further find that the relation between FRQ and investment efficiency is increasing …
Persistent link: https://www.econbiz.de/10013135252
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Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging Markets
Chen, Feng - 2010
Prior research shows that financial reporting quality (FRQ) is positively related to investment efficiency for large U … research suggests that FRQ would be less conducive to the mitigation of investment inefficiencies. Earlier studies show that … positively affects investment efficiency. We further find that the relation between FRQ and investment efficiency is increasing …
Persistent link: https://www.econbiz.de/10013141364
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The Global Financial Crisis and the Arab World : Impact, Reactions and Consequences
Brach, Juliane - 2013
Much has been written on the impact of the global financial crisis on Europe, Asia and the Americas but only little on the Arab states. This article makes an early attempt to take stock of recent developments in the Arab world and offers a systematic approach to disentangle the various...
Persistent link: https://www.econbiz.de/10013085831
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The Liquidation of Government Debt
Sbrancia, M. Belen - 2015
High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or below market real interest rates. After WWII, capital controls and regulatory restrictions created a captive audience for...
Persistent link: https://www.econbiz.de/10013027664
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The Role of Expectations in Sudden Stops
Mertens, Karel - Center for Analytic Economics, Department of Economics - 2007
triggers a Sudden Stop, together with large declines in GDP, employment, consumption and investment. There need not be any …
Persistent link: https://www.econbiz.de/10005004746