Currency Denomination Decision and the Cost of Capital: Evidence from Global Bonds

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dc.contributor.advisorDewenter, Kathryn L
dc.contributor.authorHan, Bo
dc.date.accessioned2018-01-20T00:57:42Z
dc.date.issued2018-01-20
dc.date.submitted2017-12
dc.descriptionThesis (Ph.D.)--University of Washington, 2017-12
dc.description.abstractThis paper studies the currency choice of government and public agency borrowers when they issue bonds in the international market. In particular, by constructing a comprehensive sample of global bonds issued by these issuers between 1999 and 2011, I find strong evidence that they choose their issuance currency in response to the cost saving opportunities associated with the deviation from uncovered and covered interest rate parity conditions. This finding is robust after controlling for a series of issue- and issuer-related characteristics. In addition, adopting a gravity model, I find that certain non-cost related connections between the issuer's country and the currency country can also motivate an issuer's currency choice.
dc.embargo.lift2022-12-25T00:57:42Z
dc.embargo.termsRestrict to UW for 5 years -- then make Open Access
dc.format.mimetypeapplication/pdf
dc.identifier.otherHan_washington_0250E_18040.pdf
dc.identifier.urihttp://hdl.handle.net/1773/40819
dc.language.isoen_US
dc.rightsnone
dc.subjectForeign currency
dc.subjectGlobal bond
dc.subjectGravity model
dc.subjectInterest parity condition
dc.subjectOpportunistic behavior
dc.subjectFinance
dc.subject.otherTo Be Assigned
dc.titleCurrency Denomination Decision and the Cost of Capital: Evidence from Global Bonds
dc.typeThesis

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