{
  "title": "Determinants and Effects of Countries’ External Capital Structure: A Firm-Level Analysis",
  "publication": "IMF Working Papers, February 18, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2022/02/19/determinants-and-effects-of-countries-external-capital-structure-a-firm-level-analysis-513166",
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  "summary": "In this paper, we investigate whether a firm’s composition of foreign liabilities matters for their resilience during economic turmoil and examine which characteristics determine a firm’s foreign capital structure.",
  "sections": [
    {
      "heading": "Authors and Publication",
      "content": "- By Uroš Herman, Tobias Krahnke\n- February 18, 2022\n- IMF Working Papers, Working Paper No. 2022/038, Issue: 038, Volume: 2022\n- Pages: 40\n- DOI: https://doi.org/10.5089/9798400200984.001\n- Stock No: WPIEA2022038\n- ISBN: 9798400200984\n- ISSN: 1018-5941\n- Citation (example format provided on page): Uroš Herman, and Tobias Krahnke. \"Determinants and Effects of Countries’ External Capital Structure: A Firm-Level Analysis\", IMF Working Papers 2022, 038 (2022), accessed 9/3/2026, https://doi.org/10.5089/9798400200984.001"
    },
    {
      "heading": "Research Question and Scope",
      "content": "- Investigates whether a firm’s composition of foreign liabilities matters for firm resilience during economic turmoil.\n- Examines which firm characteristics determine foreign capital structure.\n- Uses firm-level data to assess links between foreign liability composition and outcomes during the global financial crisis of 2008-2009."
    },
    {
      "heading": "Key Findings",
      "content": "- The composition of foreign liabilities matters for a country’s susceptibility to external shocks; firm-level evidence corroborates prior international macroeconomic findings.\n- Firms with a positive equity share in their foreign liabilities:\n  - Were less affected by the global financial crisis.\n  - Were less likely to default in the aftermath of the crisis.\n- Larger, more open, and more productive firms tend to have a higher equity share in total foreign liabilities."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subjects: Balance of payments, Corporate sector, Economic sectors, External position, Financial crises, Foreign corporations, Foreign direct investment, Foreign liabilities, Global financial crisis of 2008-2009\n- Keywords: Corporate sector, equity share, External Liabilities, Financial Crisis, firm-level data, Firm-level data, firm's composition, Foreign corporations, Foreign direct investment, Foreign Direct Investment, Foreign liabilities, Global, Global financial crisis of 2008-2009, sales growth, standard deviation"
    },
    {
      "heading": "Implications (inferred from findings presented)",
      "content": "- Equity composition of foreign liabilities is associated with greater firm resilience during systemic crises.\n- Firm characteristics—size, openness, productivity—are important determinants of foreign liability equity share, with potential implications for country-level external vulnerability assessments and policy aimed at strengthening corporate balance sheets.\n\nSource: IMF Working Paper — \"Determinants and Effects of Countries’ External Capital Structure: A Firm-Level Analysis\", Uroš Herman and Tobias Krahnke, February 18, 2022.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/02/19/determinants-and-effects-of-countries-external-capital-structure-a-firm-level-analysis-513166"
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    "Authors: Uroš Herman, Tobias Krahnke",
    "Published: February 18, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400200984.001",
    "By Uroš Herman, Tobias Krahnke",
    "February 18, 2022",
    "IMF Working Papers, Working Paper No. 2022/038, Issue: 038, Volume: 2022",
    "Pages: 40",
    "DOI: https://doi.org/10.5089/9798400200984.001",
    "Stock No: WPIEA2022038",
    "ISBN: 9798400200984",
    "ISSN: 1018-5941",
    "Citation (example format provided on page): Uroš Herman, and Tobias Krahnke. \"Determinants and Effects of Countries’ External Capital Structure: A Firm-Level Analysis\", IMF Working Papers 2022, 038 (2022), accessed 9/3/2026, https://doi.org/10.5089/9798400200984.001",
    "Investigates whether a firm’s composition of foreign liabilities matters for firm resilience during economic turmoil.",
    "Examines which firm characteristics determine foreign capital structure.",
    "Uses firm-level data to assess links between foreign liability composition and outcomes during the global financial crisis of 2008-2009.",
    "The composition of foreign liabilities matters for a country’s susceptibility to external shocks; firm-level evidence corroborates prior international macroeconomic findings.",
    "Firms with a positive equity share in their foreign liabilities:",
    "Larger, more open, and more productive firms tend to have a higher equity share in total foreign liabilities.",
    "Subjects: Balance of payments, Corporate sector, Economic sectors, External position, Financial crises, Foreign corporations, Foreign direct investment, Foreign liabilities, Global financial crisis of 2008-2009",
    "Keywords: Corporate sector, equity share, External Liabilities, Financial Crisis, firm-level data, Firm-level data, firm's composition, Foreign corporations, Foreign direct investment, Foreign Direct Investment, Foreign liabilities, Global, Global financial crisis of 2008-2009, sales growth, standard deviation",
    "Equity composition of foreign liabilities is associated with greater firm resilience during systemic crises.",
    "Firm characteristics—size, openness, productivity—are important determinants of foreign liability equity share, with potential implications for country-level external vulnerability assessments and policy aimed at strengthening corporate balance sheets.",
    "**Working Paper**"
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