Role of debt maturity structure on firm fixed assets during sudden stop episodes : evidence from Thailand / prepared by Maria Pia Iannariello, Hanan Morsy, and Akiko Terada Hagiwara
I. Introduction; II. Data Description and Analysis; III. Empirical Estimations and Results; A. Main Results-Tranquil vs. Sudden Stop Episodes; B. Tradable vs. Nontradable Producers; C. Debt Structure, Long- vs. Short-Term Maturity; D. Robustness Tests; IV. Conclusion; Tables; 1. Summary Statistics by Industry; 2. Firms' Characteristics by Sector; 3. Tranquil vs. Sudden Stops Episodes; 4. Regression Results-Entire Sample; 5. Regression Results-Tradable vs. Nontradable Sectors; 6. Regression Results-Long- vs. Short-Term Debt Maturity Structure; 7. Robustness Analysis; Figures
1. Behavior of Thai Capital Flows2. Growth in Firm Fixed Assets; Data Appendix; References
Summary
This paper studies the detrimental effect of sudden stops on the growth of Thai firms' fixed assets. We focus on the fixed assets adjustment that firms undertake at times of financial constraints. We derive our results from balance sheet data for 284 nonfinancial Thai listed firms. Our data demonstrate that Thai firms faced severe declines in the growth of their fixed assets starting in 1996. Regression results demonstrate, after controlling for firms' characteristics and lagged dependent variables, that holding longer-term debt maturity structure is the factor that works in the firms' favor during sudden stop episodes, while it is their profitability that matters during tranquil periods
Bibliography
Includes bibliographical references (pages 26-27)
Notes
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