Information asymmetry and foreign currency borrowing by small firms

被引：11
作者：
Brown M. [1 ]
Ongena S. [2 ]
Yeşin P. [3 ]
机构：
[1] University of St Gallen, St. Gallen 9000
[2] CentER - Tilburg University and CEPR, 5000 LE Tilburg
[3] Swiss National Bank, 8022 Zurich
来源：
Comparative Economic Studies | 2014年 / 56卷 / 1期
关键词：
banking sector; competition; foreign currency borrowing; market structure;
D O I：
10.1057/ces.2013.9
中图分类号：
学科分类号：
摘要：
We model how an information asymmetry between the lending bank and the applying firm about the currency structure of firm revenues may affect loan currency choice. Our framework features a trade-off between the lower cost of foreign currency debt and the costs of currency induced loan default. We show that under imperfect information about firm revenues more local earners choose foreign currency loans, as they do not bear the full cost of the corresponding credit risk. This result is consistent with recent evidence showing that information asymmetries may increase foreign currency borrowing by retail clients in the transition economies. © r 2014 ACES. All rights reserved.
引用
收藏
页码：110 / 131
页数：21
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