Currency Depreciation and Emerging Market Corporate Distress
研究发现新兴市场非金融企业利用有利融资条件发行美元债券并积累现金，但这类企业的股价对本地货币贬值最为敏感，脆弱性主要来自用外币债务积累的现金而非债务本身。
How do emerging market corporates fare during periods of currency depreciation? We find that nonfinancial firms that exploit favorable global financing conditions to issue U.S. dollar bonds and build cash balances are also those whose share price is most vulnerable to local currency depreciation. In particular, firms’ vulnerability to currency depreciation derives less from the foreign currency debt as such, and more from the cash balances that are built up by using foreign currency debt. Overall, our results point to a financial motive for dollar bond issuance by emerging market firms in carry trade–like transactions that leave them vulnerable in an environment of dollar strength. This paper was accepted by Gustavo Manso, finance.