Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153248
Authors: 
Siegfried, Nikolaus
Simeonova, Emilia
Vespro, Cristina
Year of Publication: 
2007
Series/Report no.: 
ECB Working Paper 814
Abstract: 
This paper investigates bond issuance of non-financial corporations in advanced economies during the period 1999-2003, attempting to understand motives for issuing in foreign currency, and determinants for the choice of currency. We consider the following influences on the currency choice when issuing foreign currency denominated debt: the microeconomic characteristics of the firm, the macroeconomic institutional environment and the financial particularities of the bond issue. We find that in addition to cost minimisation, hedging motives and the desire to establish an investor base influences the choice of currency. At the same time, market conventions and regulation also affect the choice.
Subjects: 
Bond issuance
conditional logit
Foreign currency denominated debt
nested logit
Panel logit
JEL: 
C25
E44
F23
G32
Document Type: 
Working Paper

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