Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
963624 | Journal of International Financial Markets, Institutions and Money | 2007 | 15 Pages |
Abstract
This paper shows that high macroeconomic volatility, lax rule of law, and inefficient bureaucracy in foreign countries contributes to a tilt toward short-term maturity of international debt. The results are important as short-term debt has been linked to several financial crises in recent years. The paper explores factors that contribute to short-term lending. The results are obtained using data on international lending by three groups of U.S. banks: large, medium-sized, and small. The effect of uncertainty on debt maturity is particularly strong in emerging economies and for smaller banks.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Neven T. Valev,