Uncertainty and corporate default risk: Novel evidence from emerging markets
Significant attention has been paid in the literature to the socioeconomic consequences of uncertainty; however, few studies have been devoted to the effects on corporate default risk. This study endeavours to fill this gap by investigating the influence of uncertainty on corporate default risk in t...
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| Định dạng: | Journal article |
| Ngôn ngữ: | English |
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Elsevier
2022
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| Truy cập trực tuyến: | http://scholar.dlu.edu.vn/handle/123456789/727 |
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oai:scholar.dlu.edu.vn:123456789-7272022-08-03T10:20:58Z Uncertainty and corporate default risk: Novel evidence from emerging markets Nguyễn, Đức Nguyên Nguyễn, Phúc Cảnh Đặng, Lê Phương Xuân Default risk Emerging markets Uncertainty Panel data Significant attention has been paid in the literature to the socioeconomic consequences of uncertainty; however, few studies have been devoted to the effects on corporate default risk. This study endeavours to fill this gap by investigating the influence of uncertainty on corporate default risk in the context of 26 emerging markets covering the period 1991–2019. Applying panel estimates, the results are robust and consistent. Uncertainty is positively associated with firm default risk measured by the Distance to Default. Interestingly, the impact of uncertainty tends to be greater for the lowest and highest risk firms. The study further finds that uncertainty is positively associated with firm risk-taking behaviour and the cost of debt, while it is negatively associated with cash holdings and financial performance. These effects play as channels of uncertainty impacting firm default risk. Lastly, the results show that the influence of uncertainty on firm risk is less pronounced for larger firms and firms operating in more developed stock markets. 2022-08-03T08:29:11Z 2022-08-03T08:29:11Z 2022 Journal article Bài báo đăng trên tạp chí thuộc ISI, bao gồm book chapter http://scholar.dlu.edu.vn/handle/123456789/727 10.1016/j.intfin.2022.101571 en Journal of International Financial Markets, Institutions and Money Elsevier |
| institution |
Thư viện Trường Đại học Đà Lạt |
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Thư viện số |
| language |
English |
| topic |
Default risk Emerging markets Uncertainty Panel data |
| spellingShingle |
Default risk Emerging markets Uncertainty Panel data Nguyễn, Đức Nguyên Nguyễn, Phúc Cảnh Đặng, Lê Phương Xuân Uncertainty and corporate default risk: Novel evidence from emerging markets |
| description |
Significant attention has been paid in the literature to the socioeconomic consequences of uncertainty; however, few studies have been devoted to the effects on corporate default risk. This study endeavours to fill this gap by investigating the influence of uncertainty on corporate default risk in the context of 26 emerging markets covering the period 1991–2019. Applying panel estimates, the results are robust and consistent. Uncertainty is positively associated with firm default risk measured by the Distance to Default. Interestingly, the impact of uncertainty tends to be greater for the lowest and highest risk firms. The study further finds that uncertainty is positively associated with firm risk-taking behaviour and the cost of debt, while it is negatively
associated with cash holdings and financial performance. These effects play as channels of uncertainty impacting firm default risk. Lastly, the results show that the influence of uncertainty on firm risk is less pronounced for larger firms and firms operating in more developed stock markets. |
| format |
Journal article |
| author |
Nguyễn, Đức Nguyên Nguyễn, Phúc Cảnh Đặng, Lê Phương Xuân |
| author_facet |
Nguyễn, Đức Nguyên Nguyễn, Phúc Cảnh Đặng, Lê Phương Xuân |
| author_sort |
Nguyễn, Đức Nguyên |
| title |
Uncertainty and corporate default risk: Novel evidence from emerging markets |
| title_short |
Uncertainty and corporate default risk: Novel evidence from emerging markets |
| title_full |
Uncertainty and corporate default risk: Novel evidence from emerging markets |
| title_fullStr |
Uncertainty and corporate default risk: Novel evidence from emerging markets |
| title_full_unstemmed |
Uncertainty and corporate default risk: Novel evidence from emerging markets |
| title_sort |
uncertainty and corporate default risk: novel evidence from emerging markets |
| publisher |
Elsevier |
| publishDate |
2022 |
| url |
http://scholar.dlu.edu.vn/handle/123456789/727 |
| _version_ |
1768305834029219840 |