Foreign currency - Denominated debt: An empirical examination
| dc.contributor | Virginia Tech | en |
| dc.contributor.author | Kedia, Simi | en |
| dc.contributor.author | Mozumdar, Abon | en |
| dc.date.accessed | 2014-06-26 | en |
| dc.date.accessioned | 2014-06-27T14:45:38Z | en |
| dc.date.available | 2014-06-27T14:45:38Z | en |
| dc.date.issued | 2003-10 | en |
| dc.description.abstract | We examine the determinants of debt issuance in 10 major currencies by large U. S. firms. Using the fraction of foreign subsidiaries and tests exploiting the disaggregated nature of our data, we find strong evidence that firms issue foreign currency debt to hedge their exposure both at the aggregate and the individual currency levels. We also find some evidence that firms choose currencies in which information asymmetry between domestic and foreign investors is low. We find no evidence that tax arbitrage, liquidity of underlying debt markets, or legal regimes influence the decision to issue debt in foreign currency. | en |
| dc.description.sponsorship | Division of Research at Harvard Business School | en |
| dc.description.sponsorship | Pamplin College of Business | en |
| dc.identifier.citation | Simi Kedia and Abon Mozumdar. "Foreign Currency-Denominated Debt: An Empirical Examination," The Journal of Business, Vol. 76, No. 4 (October 2003), pp. 521-546. DOI: 10.1086/377029 | en |
| dc.identifier.doi | https://doi.org/10.1086/377029 | en |
| dc.identifier.issn | 0021-9398 | en |
| dc.identifier.uri | http://hdl.handle.net/10919/49135 | en |
| dc.identifier.url | http://www.jstor.org/stable/10.1086/377029 | en |
| dc.language.iso | en_US | en |
| dc.publisher | University of Chicago Press | en |
| dc.rights | In Copyright | en |
| dc.rights.uri | http://rightsstatements.org/vocab/InC/1.0/ | en |
| dc.subject | exchange-rate exposure | en |
| dc.subject | covered interest arbitrage | en |
| dc.subject | unexploited profits | en |
| dc.subject | financing policies | en |
| dc.subject | risk management | en |
| dc.subject | united-states | en |
| dc.subject | market | en |
| dc.subject | integration | en |
| dc.subject | investment | en |
| dc.subject | firms | en |
| dc.subject | business | en |
| dc.title | Foreign currency - Denominated debt: An empirical examination | en |
| dc.title.serial | Journal of Business | en |
| dc.type | Article - Refereed | en |
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