Capital Controls and the Cost of Debt /

Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads. A number of heterogeneities suggest that th...

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Autor principal: Andreasen, Eugenia
Altres autors: Schindler, Martin, Valenzuela, Patricio
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2017.
Col·lecció:IMF Working Papers; Working Paper ; No. 2017/135
Accés en línia:Full text available on IMF
Descripció
Sumari:Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads. A number of heterogeneities suggest that the effect of capital controls on inflows is particularly strong for more financially constrained firms, establishing a novel channel through which capital controls affect economic outcomes. By contrast, we do not find a robust significant effect of restrictions on outflows.
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Descripció física:1 online resource (26 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students