Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/122138
Authors: 
Caballero, Julian
Panizza, Ugo
Powell, Andrew
Year of Publication: 
2015
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper 21/2015
Abstract: 
Recent work suggests that non-financial firms have acted like financial intermediaries particularly in emerging economies. We corroborate these findings but then ask why? Our results indicate evidence for carry-trade activities but focused in countries with higher levels of capital controls, particular controls on inflows. We find little evidence for such activities given other potential motives. We posit that this phenomenon is due more to the reaction to low global interest rates and strong capital inflows than to incomplete markets or the retreat of global banks due to impaired balance-sheets or tighter regulations.
Subjects: 
corporate finance
bond issuance
currency mismatches
carry-trade
capital controls
JEL: 
E51
F30
F33
Document Type: 
Working Paper

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