Journal ArticleDOI
The currency denomination of long-term debt in the Canadian corporate sector: An empirical analysis
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In this article, a portfolio model explaining the allocation of long-term debt between Canadian dollar and US dollar denominated bonds is proposed and implemented, and the role of anticipated exchange rate changes and the specification of the adjustment process is emphasized.About:
This article is published in Journal of International Money and Finance.The article was published on 1988-03-01. It has received 23 citations till now. The article focuses on the topics: Liberian dollar & Exchange rate.read more
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A Rational Expectations Approach to Macroeconometrics
TL;DR: A Rational Expectations Approach to Macroeconometrics pursues a rational expectations approach to the estimation of a class of models widely discussed in the macroeconomics and finance literature as discussed by the authors, which emphasize the effects from unanticipated, rather than anticipated, movements in variables.
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Euro area corporate debt securities market: first empirical evidence
TL;DR: In this article, a first empirical examination of the corporate debt market since the introduction of the euro using macroeconomic data is presented, showing that corporate debt issuance is positively correlated with mergers and acquisitions and with industrial production, taken as a proxy of investment expenditures or working capital.
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Foreign-Currency Bonds: Currency Choice and the Role of Uncovered and Covered Interest Parity
Maurizio Michael Habib,Mark Joy +1 more
TL;DR: In this article, the authors investigated whether bond issuers choose their currency in order to exploit the borrowing-cost savings associated with deviations from uncovered and covered interest parity, and they found that the choice of currency is sensitive to deviations from covered parity but insensitive, in general, to uncovered interest parity.
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Foreign Currency Denominated Borrowing in the Absence of Operating Incentives
TL;DR: In this paper, the authors find strong and consistent evidence that the prevailing covered and uncovered interest yields across currencies matter to borrowers in choosing the currency in which to denominate their international debt, and they estimate the average gains to opportunistic covered yield borrowing at 4 to 18 basis points.
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Foreign currency-denominated borrowing in the absence of operating incentives.
TL;DR: This article found that the average gains to opportunistic covered yield borrowing were 4 to 18 basis points, and the average bond offering in their sample precedes a large and beneficial depreciation of the issue currency over the course of the following year.
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Specification Tests in Econometrics
TL;DR: In this article, the null hypothesis of no misspecification was used to show that an asymptotically efficient estimator must have zero covariance with its difference from a consistent but asymptonically inefficient estimator, and specification tests for a number of model specifications in econometrics.
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The Cost of Capital, Corporation Finance and the Theory of Investment
TL;DR: In this article, the effect of financial structure on market valuations has been investigated and a theory of investment of the firm under conditions of uncertainty has been developed for the cost-of-capital problem.
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International Portfolio Choice and Corporation Finance: A Synthesis
Michael Adler,Bernard Dumas +1 more
TL;DR: In this article, the authors focus on international portfolio choice and corporation finance, and present a micro-theory of individual portfolio choice; equilibrium pricing relationships and risk-return tradeoffs; Objectives for value maximizing firms.
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Sharing rules and equilibrium in an international capital market under uncertainty
TL;DR: In this paper, the set of relative asset prices under pure exchange in international capital markets depends on the real purchasing power of nominal payoffs under uncertainty and does not depend on the currency in which the nominal payoff are denominated.