| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w28096 |
| 来源ID | Working Paper 28096 |
| Foreign Currency Borrowing of Corporations as Carry Trades: Evidence from India | |
| Viral V. Acharya; Siddharth Vij | |
| 发表日期 | 2020-11-16 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | We establish that macroprudential policies limiting capital flows can curb risks arising from corporate foreign currency borrowing in emerging markets. Using detailed firm-level data from India, we show that propensity to issue foreign currency debt for the same firm is higher when the difference in short-term interest rates between India and the US is higher, i.e., when the dollar ‘carry trade’ is more profitable; this behavior is driven by the period after the global financial crisis. The positive relationship between issuance and the ‘carry trade’ breaks down once regulators institute more stringent interest-rate caps on foreign currency borrowing. Riskier borrowers such as importers and those with higher interest costs cut issuance most. Firm equity exposure to foreign exchange risk rose after issuance in favorable funding conditions and emerged as a source of external sector vulnerability during the ‘taper tantrum’ of 2013. Macroprudential policy action limiting capital flows is able to nullify this effect, such as during the market stress due to the COVID-19 pandemic. |
| 主题 | International Economics ; International Finance ; Financial Economics ; Financial Markets ; Corporate Finance |
| URL | https://www.nber.org/papers/w28096 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/585770 |
| 推荐引用方式 GB/T 7714 | Viral V. Acharya,Siddharth Vij. Foreign Currency Borrowing of Corporations as Carry Trades: Evidence from India. 2020. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w28096.pdf（953KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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