Veranstaltung
29
Nov 2021

14:15 - 15:45
IWH Research Seminar

Virtual Lecture: Corporate foreign bond issuance and interfirm loans in China

We use firm-level data to analyze international bond issuance by Chinese non-financial corporations, distinguishing those by sectors classed as ‘risky’.

Wer
Yi Huang  (The Graduate Institute, Geneva)
Wo
via Zoom
Yi Huang

Zur Person

Yi Huang is associate professor of international economics and Pictet Chair in Finance and Development at the Graduate Institute of International and Development Studies. His research interests are International Macroeconomics and Finance, Labor and Finance, Entrepreneurship, Digital Economics and Fintech, Chinese Economy.

We use firm-level data to analyze international bond issuance by Chinese non-financial corporations, distinguishing those by sectors classed as ‘risky’. Dollar issuance is positively correlated with the differential between domestic and foreign interest rates, and this effect is particularly strong for firms in risky sectors. Strikingly, firms in risky sectors use the proceeds to do more inter-firm lending than firms in non-risky sectors. Moreover, this lending rose significantly after the authorities sought to restrict the financial activities of risky firms in 2008- 09. Firms in risky sectors compound risk by engaging in speculative activities that mimic the behavior of financial institutions while escaping prudential regulation. Read more ...

To join the lecture via ZOOM, please contact Alessandro Sardone.

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