Global sales, international currencies, and the currency denomination of debt

• 成果类型: Article
• 署名作者: Colacito, Riccardo; Qian, Yan; Stathopoulos, Andreas
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Central University of Finance & Economics; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104184
• 发表日期: 2025-12
• 页码: 104184
• 关键词: foreign exchange; debt denomination; international financial markets; EXCHANGE-RATE EXPOSURE; FOREIGN-CURRENCY; MODEL

摘要

We document that the currency denomination of the debt of large firms in developed countries is strongly associated with the geographical distribution of their sales. Furthermore, those firms exhibit significant home currency bias and international currency bias in borrowing: controlling for the geography of sales, they borrow more in their home currency and the two most traded currencies, the US dollar and the euro. We also show that the firms' debt currency denomination choices are associated with export invoicing currency patterns in a way consistent with a currency hedging mechanism. In particular, firms domiciled in countries that invoice a larger share of their exports in either their home currency or in a vehicle currency exhibit a weaker connection between the currency denomination of their debt and the geography of their sales. Moreover, firms in countries that invoice more of their exports in an international currency are characterized by stronger international currency bias in debt issuance.