Investment and exposure to exchange rate changes in Colombia

"We assemble a large data base of Colombian medium - large firms covering the 1997-2008 period and study different channels through which real exchange rate (RER) changes affect firm investment and profits. With regard to investment, (i) there are adjustment costs, presumably related to capital...

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Autores Principales: Arbeláez, María A., Steiner, Roberto, Salamanca, Andrés
Publicado: 2015
Materias:
Acceso en línea:http://hdl.handle.net/11445/324
id ir-11445-324
recordtype dspace
spelling ir-11445-3242017-06-17T18:14:01Z Investment and exposure to exchange rate changes in Colombia Arbeláez, María A. Steiner, Roberto Salamanca, Andrés Tasa de Cambio Real Comercio Exterior Inversiones "We assemble a large data base of Colombian medium - large firms covering the 1997-2008 period and study different channels through which real exchange rate (RER) changes affect firm investment and profits. With regard to investment, (i) there are adjustment costs, presumably related to capital market imperfections, (ii) investment increases with liquidity as firms face restricted access to external financing, (iii) RER changes have no direct effect on investment, even after controlling for the effects of each sector, (iv) we find no evidence of a differential effect of RER changes on investment depending on exposure to foreign debt. This might be because few firms carry foreign debt or because those that do avoid currency mismatches through "natural" hedging or use financial instruments to hedge exchange rate risk." "We assemble a large data base of Colombian medium - large firms covering the 1997-2008 period and study different channels through which real exchange rate (RER) changes affect firm investment and profits. With regard to investment, (i) there are adjustment costs, presumably related to capital market imperfections, (ii) investment increases with liquidity as firms face restricted access to external financing, (iii) RER changes have no direct effect on investment, even after controlling for the effects of each sector, (iv) we find no evidence of a differential effect of RER changes on investment depending on exposure to foreign debt. This might be because few firms carry foreign debt or because those that do avoid currency mismatches through "natural" hedging or use financial instruments to hedge exchange rate risk." E22 F31 2015-12-10T12:16:09Z 2016-01-21T02:39:04Z 2017-04-18T21:16:09Z 2017-06-17T18:14:01Z 2015-12-10T12:16:09Z 2016-01-21T02:39:04Z 2017-04-18T21:16:09Z 2017-06-17T18:14:01Z 2010-05 http://hdl.handle.net/11445/324 application/pdf
institution Fedesarrollo
collection DSpace
topic Tasa de Cambio Real
Comercio Exterior
Inversiones
spellingShingle Tasa de Cambio Real
Comercio Exterior
Inversiones
Arbeláez, María A.
Steiner, Roberto
Salamanca, Andrés
Investment and exposure to exchange rate changes in Colombia
description "We assemble a large data base of Colombian medium - large firms covering the 1997-2008 period and study different channels through which real exchange rate (RER) changes affect firm investment and profits. With regard to investment, (i) there are adjustment costs, presumably related to capital market imperfections, (ii) investment increases with liquidity as firms face restricted access to external financing, (iii) RER changes have no direct effect on investment, even after controlling for the effects of each sector, (iv) we find no evidence of a differential effect of RER changes on investment depending on exposure to foreign debt. This might be because few firms carry foreign debt or because those that do avoid currency mismatches through "natural" hedging or use financial instruments to hedge exchange rate risk."
author Arbeláez, María A.
Steiner, Roberto
Salamanca, Andrés
author_facet Arbeláez, María A.
Steiner, Roberto
Salamanca, Andrés
author_sort Arbeláez, María A.
title Investment and exposure to exchange rate changes in Colombia
title_short Investment and exposure to exchange rate changes in Colombia
title_full Investment and exposure to exchange rate changes in Colombia
title_fullStr Investment and exposure to exchange rate changes in Colombia
title_full_unstemmed Investment and exposure to exchange rate changes in Colombia
title_sort investment and exposure to exchange rate changes in colombia
publishDate 2015
url http://hdl.handle.net/11445/324
_version_ 1626725470281138176
score 11,489418