The Role of Bond Finance in Firms’ Survival During the Asian Crisis

Spaliara, M.E. and Tsoukas, S. (2010) The Role of Bond Finance in Firms’ Survival During the Asian Crisis. Working Paper. Hong Kong Institute for Monetary Research.

Abstract

In this paper we assess the effects of bond financing on firms' survival during the 1997-98 Asian crisis. Using a novel database covering the period 1995 to 2007 for five Asian economies most affected by the crisis - Indonesia, Korea, Malaysia, Singapore and Thailand - we find strong evidence that the Asian crisis affected both directly and indirectly (through interactions with financial indicators) the probability of survival. More importantly, we show that bond issuers, irrespective of the currency denomination, are more likely to survive compared to non-issuers. Nevertheless, only firms issuing bonds in local currency are shielded from the adverse effects of the crisis.

• Item Type: Research Reports or Papers (Working Paper)
• Status: Published
• Glasgow Author(s) Enlighten ID: Tsoukas, Professor Serafeim and Spaliara, Professor Marina Eliza
• Authors: Spaliara, M.E., and Tsoukas, S.
• Subjects: H Social Sciences > HG Finance
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Publisher: Hong Kong Institute for Monetary Research