Warianty tytułu
The Differential of Financing Costs and Changes in Foreign Currency Corporate Debt
Języki publikacji
Abstrakty
Autor prezentuje wyniki badań dotyczących zależności pomiędzy różnicą kosztów krótkoterminowego finansowania w walucie krajowej i walutach zagranicznych a skłonnością przedsiębiorstw sektora niefinansowego do zaciągania długu walutowego. Badanie zostało przeprowadzone na podstawie porównania kosztów finansowania w polskim złotym i kluczowych eurowalutach oraz oszacowanie korelacji pomiędzy różnicą kosztów finansowania a saldem długu walutowego przedsiębiorstw niefinansowych. (fragment tekstu)
The article presents results of a statistical analysis of dependencies between the difference in costs of short-term financing in the home currency as well as in foreign currencies and propensity of enterprises operating in the non-financial sector in Poland to incur debt in foreign currencies in the period 2000-2004. Studies were conducted for the debt denominated in the PLN and in the main euro-currencies (i.e. the American dollar, the British pound, the euro, the Swiss frank, the Japanese yen). The analysis shows that in the period under investigation credit in eurocurrencies were on average cheaper than alternative loans in PLN. The difference in the costs of financing on a yearly scale amounted to several per cent points. Such high benefits resulted from relatively low interest rates on foreign currency liabilities and from appreciation, lower on average than the parity change, or even periodical depreciation of foreign currencies. Moreover, the research shows that although there was a correlation between the difference in the cost of financing and the changes in foreign currency debts of non-financial enterprises, this correlation was weak. Thus it may be assumed that entrepreneurs, apart from the current and past analysis of differences in the costs of financing, take into account their own expectations as regards changes in exchange rates in the future. Moreover, in the behaviour of entities characterized by risk aversion one can notice a phenomenon described as home bias. This weak correlation can also be explained by the fact that the motive for incurring foreign currency debt is frequently hedging of a long-term currency position of an enterprise. In this case differences in the cost of financing become a secondary criterion while making a decision which source of financing to choose. (original abstract)
Rocznik
Numer
Strony
102--115
Opis fizyczny
Twórcy
autor
Bibliografia
- Shapiro A., Multinational Financial Management, John Wiley & Sons, New York 2003, s. 141-143.
- Solnik B., McLeavey D., International Investments, Pearson, 2003, s. 108-114.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171217775