{"title":"外币借贷与企业风险暴露:新兴市场经济视角","authors":"Prasenjit Chakrabarti , Sudipta Sen","doi":"10.1016/j.jpolmod.2023.09.004","DOIUrl":null,"url":null,"abstract":"<div><p>Foreign currency borrowings by emerging market corporations have increased significantly post-global financial crisis. Extant literature has mainly focussed on the flow of foreign currency borrowings, and policies which control the volatility of the flow of the foreign currency borrowings. In this paper, we emphasize the stock of the foreign currency borrowings in the balance sheet of a firm instead of the flow of the foreign currency borrowings, and show the ineffectiveness of policies focused on controlling the flow of foreign currency borrowings. We use the data of non-financial Indian firms listed in the Bombay Stock Exchange and National Stock Exchange. Our analysis show the fallacy of a policy focussed on controlling the flow of foreign currency borrowings. Despite policies which control the flow of the foreign currency borrowings, if a firm has a high stock of foreign currency borrowings in their balance sheet then the financial risk associated with the firm increases. A possible implication of our results is that too much foreign currency borrowings may pile up the risk in the financial system which may become a cause of concern.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":null,"pages":null},"PeriodicalIF":3.5000,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Foreign currency borrowing and risk exposure of firms: An emerging market economy viewpoint\",\"authors\":\"Prasenjit Chakrabarti , Sudipta Sen\",\"doi\":\"10.1016/j.jpolmod.2023.09.004\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<div><p>Foreign currency borrowings by emerging market corporations have increased significantly post-global financial crisis. Extant literature has mainly focussed on the flow of foreign currency borrowings, and policies which control the volatility of the flow of the foreign currency borrowings. In this paper, we emphasize the stock of the foreign currency borrowings in the balance sheet of a firm instead of the flow of the foreign currency borrowings, and show the ineffectiveness of policies focused on controlling the flow of foreign currency borrowings. We use the data of non-financial Indian firms listed in the Bombay Stock Exchange and National Stock Exchange. Our analysis show the fallacy of a policy focussed on controlling the flow of foreign currency borrowings. Despite policies which control the flow of the foreign currency borrowings, if a firm has a high stock of foreign currency borrowings in their balance sheet then the financial risk associated with the firm increases. A possible implication of our results is that too much foreign currency borrowings may pile up the risk in the financial system which may become a cause of concern.</p></div>\",\"PeriodicalId\":48015,\"journal\":{\"name\":\"Journal of Policy Modeling\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":3.5000,\"publicationDate\":\"2023-11-01\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Journal of Policy Modeling\",\"FirstCategoryId\":\"96\",\"ListUrlMain\":\"https://www.sciencedirect.com/science/article/pii/S0161893823001047\",\"RegionNum\":2,\"RegionCategory\":\"经济学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q1\",\"JCRName\":\"ECONOMICS\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Policy Modeling","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0161893823001047","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
Foreign currency borrowing and risk exposure of firms: An emerging market economy viewpoint
Foreign currency borrowings by emerging market corporations have increased significantly post-global financial crisis. Extant literature has mainly focussed on the flow of foreign currency borrowings, and policies which control the volatility of the flow of the foreign currency borrowings. In this paper, we emphasize the stock of the foreign currency borrowings in the balance sheet of a firm instead of the flow of the foreign currency borrowings, and show the ineffectiveness of policies focused on controlling the flow of foreign currency borrowings. We use the data of non-financial Indian firms listed in the Bombay Stock Exchange and National Stock Exchange. Our analysis show the fallacy of a policy focussed on controlling the flow of foreign currency borrowings. Despite policies which control the flow of the foreign currency borrowings, if a firm has a high stock of foreign currency borrowings in their balance sheet then the financial risk associated with the firm increases. A possible implication of our results is that too much foreign currency borrowings may pile up the risk in the financial system which may become a cause of concern.
期刊介绍:
The Journal of Policy Modeling is published by Elsevier for the Society for Policy Modeling to provide a forum for analysis and debate concerning international policy issues. The journal addresses questions of critical import to the world community as a whole, and it focuses upon the economic, social, and political interdependencies between national and regional systems. This implies concern with international policies for the promotion of a better life for all human beings and, therefore, concentrates on improved methodological underpinnings for dealing with these problems.