Do External Funds Yield Lower Returns ? Recent Evidence from East Asian Economies
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چکیده
There is little micro-economic evidence of the macroeconomic argument of excessive borrowing and overinvestment in East Asia before the crisis of 1997. Using firmlevel panel data-set from four Asian countries, this paper examines the efficiency of internal and external funds and compares the rates of return to these funds. We obtain selectivity-corrected random effects estimates of rates of return to internal and external funds for firms with low and high debt. Both sets of estimates consistently suggest that marginal returns to debt and equity have been low in our sample. Also there are significant deviations between returns to debt and effective interest rates for a large number of firms in each country. JEL: G32, O16
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تاریخ انتشار 2003