연구정보
[경제] Corporate Bond Currency Denomination in Asia: The Role of Financial Market Developments and International Business Relationship
동남아시아 일반 국외연구자료 연구보고서 - HKIMR 발간일 : 2022-08-16 등록일 : 2022-12-08 원문링크
This study examines the driving factors behind Asian firms’ choice of currency denomination (US dollar versus local currency) when issuing corporate bonds. Our econometric results show that (i) the rapid development of the local currency bond market in Asia and (ii) the increasing presence of foreign investors have reduced regional firms’ tendency to issue US dollar bonds. In addition, our results confirm that firms’ FX hedging needs due to money flows induced by international business relationships is a crucial incentive for US dollar bond issuance. Notably, when trading with foreign business partners, firms are more likely to issue US dollar bonds to hedge against payables than receivables. Furthermore, data science analysis verifies that the role of business relationship is more stable and fundamental than other factors in determining firms’ issuing currencies. As such, Asian policymakers should devote more attention to firms with more cross-border payments when scrutinising the corporate sector’s financial vulnerability. They should also continue fostering the development of local currency bond markets and spur the use of local currencies in invoicing regional business transactions.
본 페이지에 등재된 자료는 운영기관(KIEP) 및 EMERiCs의 공식적인 입장을 대변하고 있지 않습니다.
