The real effects of capital controls: Firm-level evidence from a policy experiment

• 成果类型: Article
• 署名作者: Alfaro, Laura; Chari, Anusha; Kanczuk, Fabio
• 署名单位: Harvard University; University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; Universidade de Sao Paulo
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2017.06.004
• 发表日期: 2017
• 页码: 191-210
• 关键词: Capital controls; Discriminatory taxation; International investment barriers; cost of capital; exports

摘要

This paper evaluates the effects of capital controls on firm-level stock returns and real investment using data from Brazil. On average, there is a statistically significant drop in cumulative abnormal returns consistent with an increase in the cost of capital for Brazilian firms following capital control announcements. Large firms and the largest exporting firms appear less negatively affected compared to external-finance-dependent firms, and capital controls on equity inflows have a more negative announcement effect on equity returns than those on debt inflows. Overall, the findings have implications for macro-finance models that abstract from heterogeneity at the firm level to examine the optimality of capital control taxation. (C) 2017 Elsevier B.V. All rights reserved.