Legal effectiveness and external capital : the role of foreign debt

Previous research has documented weak, and sometimes conflicting, effects of legal quality on measures of firm debt. Using WorldScope data for 1,689 firms, as well as more detailed proprietary data for 315 firms across nine East Asian countries, the authors find that access to foreign financing appears to loosen borrowing constraints associated with poor legal systems. This helps resolve inconsistencies in prior findings and explains how legal protection is important for borrowing by firms. In particular, they find that legal effectiveness is important for determining the amount, maturity, and currency denomination of debt. The authors discuss several mechanisms by which firms can avoid the costs of poor legal systems with foreign borrowing. The paper contributes to the policy debate surrounding the importance of creditor rights for domestic lending.Municipal Financial Management,Banks&Banking Reform,Economic Theory&Research,Financial Intermediation,Environmental Economics&Policies

Exchange rate risk management : evidence from East Asia

The recent East Asian financial crisis provides a natural experiment for investigating foreign exchange risk management by nonfinancial corporations. During this period, the financial crisis exposed local firms to large depreciations in exchange rates and reduced access to foreign capital. The authors explore the exchange rate hedging practices of firms that hedged exposure to foreign debt in eight East Asian countries between 1996 and 1998. They identify and characterize East Asian companies that used foreign currency derivatives, documenting differences in size, financial characteristics, and exposure to domestic and foreign debt. They investigate the factors improtant in the use of foreign currency derivatives. Unlike studies of US firms, they find limited support for existing theories of optimal hedging. Instead, they find that firms use foreign earnings as a substitute for hedging with derivatives. And they find evidence that firms engage in"selective"hedging. They investigate the relative performance of hedgers during and after the crisis. They find no evidence that East Asian firms eliminated their foreign exchange exposure by using derivatives. Firms that used derivatives before the crisis performed just as poorly as nonhedgers during the crisis. After the crisis, firms that hedged performed somewhat better than nonhedgers, but this result appears to be explained by a larger post-crisis currency exposure for hedgers (an exchange rate risk premium), which had limited access to derivatives during this period.Payment Systems&Infrastructure,Financial Intermediation,Economic Theory&Research,Banks&Banking Reform,Environmental Economics&Policies,Banks&Banking Reform,Economic Theory&Research,Environmental Economics&Policies,Strategic Debt Management,Financial Intermediation

1861-08-28 1st Lieutenant George W. Brown writes to Governor Washburn regarding Major Gardiner\u27s accusations

https://digitalmaine.com/cw_me_2nd_regiment_corr/1117/thumbnail.jp

Qualitative Microanalysis of Non-Ferrous Metals

During summer vacations, part of my school expense was earned as a purchaser of non-ferrous scrap metal for a small Chicago smelter. In such purchasing, it is very necessary to know something of the general composition of the metal. For example, in buying soldered articles, it is of vital importance to know whether the solder is high in tin or lead, and whether it contains antimony or bismuth. Other purchasers to whom I have talked have reported the same difficulty

Color Characteristics of Certain Acid-Base Indicators

It was found that students have difficulty in observing end points when titrating with methyl red and methyl orange as indicators, because of the comparatively large volume of solution necessary to cause a definite color change. Methyl orange-xylene cyanole was purchased from Eastman Kodak Company to overcome this difficulty. However, it was found that the color change of this mixed indicator was not completely satisfactory. A study has been made to obtain an indicator which presented the best possible color characteristics combined with the lowest pH interval for the titration of strong acids and bases. Four indicators were studied. They were methyl red, methyl red-xylene cyanole, methyl red plus methyl orange-xylene cyanole, and methyl orange-xylene cyanole

Sunbeam Rose

https://digitalcommons.library.umaine.edu/mmb-vp/2536/thumbnail.jp