원문정보
초록
영어
We investigate the determinants of firms’ usage of foreign currency (FC) debt financing, relative to local currency (LC) debt financing. Employing extensive data of Korean firms during 2002-2012, we find that the firm-level determinants of FC and LC debt financing differ and vary by the period of appreciation or depreciation of LC value. Consistent with the findings in the literature, a firm’s export ratio is significantly related to the usage of FC debt, evidence supporting for the hedging role of FC debt. Undocumented in the literature, however, we provide evidence on the separation of firms favoring FC debt and firms favoring LC debt. The LC debt financing is affected mainly by borrower incentives such as operating profitability, and depreciation expense that reflect borrower’s capital needs. In contrast, the FC debt financing is affected mostly by lender incentives such as tangible asset ratio, firm size, and asset growth, as well as export ratio, which foreign lenders weigh heavily to assess the potential value of collaterals.
목차
1. Introduction
2. Implications of Existing Capital Structure Theories on the Usage of FC debt
3. Research Design
3.1. Data and sample construction
4. Empirical Results
4.1. Summary statistics of variables by period
4.2. Difference tests for firms financing foreign versus local currency debt
4.3. Pearson correlation coefficients
4.4. Tobit regression results on the determinants of FC vs. LC debt financing
4.5. Ordered logit regression results on the determinants of FC vs. LC debt financing
4.6. Implications of empirical results
4.7. Robustness tests
5. Summary and Conclusion
References