RT info:eu-repo/semantics/article
T1 Currency mismatches in emerging markets: Effects on corporate liquidity, investment dynamics and performance
A1 De Gregorio, José
A1 Horra Ruiz, Luis Pablo de la
A1 Jara, Mauricio
K1 USD bond issuance
K1 Emerging markets
K1 Liquidity buffers
K1 Save-to-invest
K1 Currency depreciation
K1 Risk-adjusted spreads
K1 5308 Economía General
AB We examine how USD-denominated bond issuance by non-financial listed firms in emerging market economies affects cash holdings and real activity under currency depreciations and shifting external borrowing conditions. Using firm-year data for 1655 listed firms in fifteen EMEs (2001–2016) and an issuance-based measure of offshore access, we find that issuing abroad raises cash holdings and increases investment with a lag, consistent with a save-to-invest motive. These effects are stronger when country-level risk-adjusted domestic–U.S. borrowing spreads are high. Depreciations dampen the contemporaneous cash buildup but do not systematically reduce investment or competitiveness. Instead, firms expand working capital and, when depreciations coincide with high spreads, increase sales and capacity utilization, indicating adjustment through liquidity and operational margins rather than sharp balance-sheet distress.
PB Elsevier
SN 1062-9408
YR 2026
FD 2026
LK https://uvadoc.uva.es/handle/10324/83312
UL https://uvadoc.uva.es/handle/10324/83312
LA eng
NO The North American Journal of Economics and Finance, 2026, vol. 83, p. 102597
NO Producción Científica
DS UVaDOC
RD 03-mar-2026