Corporate bonds, exchange rates and business strategy
| Autor: | Konstantina Pendaraki, Konstantina Vartholomatou, Athanasios Tsagkanos |
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| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | International Journal of Banking, Accounting and Finance. 12:97 |
| ISSN: | 1755-3849 1755-3830 |
| DOI: | 10.1504/ijbaaf.2021.10035939 |
| Popis: | We examine the relationship between corporate bonds and exchange rates in the USA and Greece highlighting asymmetries and volatility among markets. A theoretical framework is constructed to treat the issue of corporate bonds. The employed methodology concerns the QARDL-ECM that is applied to non-stationary regressors. In Greece, our key findings point that changes in corporate bonds are mainly driven by changes in exchange rates. The quantile estimates show that the strength of long-run relationship increases as the risk of default for the country diminishes. In the USA, both long-run and short-run relationships between variables are defined. The changes in exchange rates are mainly driven by changes in corporate bonds. The quantile estimates exhibit a non-symmetrical pattern of the relationship which is a clear evidence of possible financing problems in enterprises. A key contribution concerns the suggestion of a sound policy for the enterprises for attaining stable growth in an environment of financial stress and asymmetry. |
| Databáze: | OpenAIRE |
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