The diverse effects of currency crises on multinational and local firms: The use of foreign currency debt

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Journal of Multinational Financial Management Pub Date : 2021-12-01 DOI:10.1016/j.mulfin.2021.100706

Jing Jin , Rose C. Liao , Gilberto Loureiro

引用次数: 1

Abstract

Using a large sample of 1017 multinational parents with 13,758 affiliates and 3588 local firms in 26 countries, we examine the impact of currency crises on multinational firms and local firms between 2006 and 2014. We find that multinational affiliates use their internal capital markets to capitalize on the benefits of large currency depreciations and increase sales and investment significantly more than local firms. We trace this differential response to the use of foreign currency debt. We find that local firms without foreign currency debt are less affected by currency depreciations. In addition, multinational affiliates whose parent firms are also affected by a currency crisis in their home country experience a larger decrease in sales and investment. Our results are not driven by the global financial crisis years.

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货币危机对跨国公司和本地公司的不同影响:外币债务的使用

我们以26个国家的1017家跨国母公司、13758家附属公司和3588家当地公司为样本，研究了2006年至2014年间货币危机对跨国公司和当地公司的影响。我们发现，跨国子公司利用其内部资本市场来利用货币大幅贬值的好处，并比当地公司显著增加销售和投资。我们将这种差异反应归因于外币债务的使用。我们发现，没有外币债务的本地企业受货币贬值的影响较小。此外，母公司也受到本国货币危机影响的跨国子公司的销售和投资下降幅度较大。我们的业绩并非受全球金融危机年份的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.