D The impact of foreign liabilities on small firms: Firm-level evidence from the Korean crisis

• 成果类型: Article
• 署名作者: Kim, Yun Jung; Tesar, Linda L.; Zhang, Jing
• 署名单位: Sogang University; University of Michigan System; University of Michigan; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2015.05.006
• 发表日期: 2015
• 页码: 209-230
• 关键词: FINANCIAL CRISIS; Firm-level data; Balance-sheet effects; Korean economy

摘要

Using Korean firm-level data on publicly-listed and privately-held firms together with firm exit data, we find strong evidence that holdings of foreign-currency denominated debt negatively affected the economic performance of small firms during the 1997-98 crisis. The large exchange rate depreciation that occurred during the crisis resulted in a decline in net worth for firms with foreign-currency denominated debt on their balance sheets. Small firms with more short-term foreign debt were more likely to declare bankruptcy. Conditional on surviving the crisis, small firms that had more short-term foreign debt experienced larger declines in sales. The exit (bankruptcy) margin accounts for a large fraction of small firms' adjustment during the crisis. (C) 2015 Elsevier By. All rights reserved.