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External Financing Dependence and Corporate Saving in ASEAN5
Author:
Xin Li null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 223
Language:
English
Publication Date:
30 Oct 2020
DOI:
https://doi.org/10.5089/9781513560175.001
ISBN:
9781513560175
ISSN:
1018-5941
Pages:
41
Keywords:
ASEAN countries; corporate saving; external financing need; export-orientation; financial constraint; capital account openness; exchange rate depreciation.; WP; saving rate; high-tech company; Level analysis; tech firm; firm's use; precautionary saving theory; saving behavior; use of external finance; exchange rate depreciation; Financial sector development; Commercial banks; Capital flows; Currencies; Precautionary savings; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Using firm-level data on ASEAN5, this paper studies the differential effects of macro-financial and structural factors on corporate saving behavior through the lens of external financing dependence. The finding suggests that non-financial corporations in ASEAN5 have been subject to binding financial constraints over the past two decades. Greater capital account openness or exchange rate depreciation reduces the average saving rate of industries with low dependence on external funds, while it increases the saving rate of industries with high dependence on external funds. The effects are greater for export-oriented industries. An improvement in banking sector competition, banks’ lending efficiency, or policy clarity is associated with lower saving rate of firms across the board.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund