TY - BOOK ID - 85597370 TI - Financial Development, Exchange Rate Fluctuations and Debt Dollarization: A Firm-Level Evidence PY - 2019 SN - 1513511173 1513511149 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Finance: General KW - Foreign Exchange KW - Investments: General KW - Money and Monetary Policy KW - International Lending and Debt Problems KW - Portfolio Choice KW - Investment Decisions KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Financial Markets and the Macroeconomy KW - Financing Policy KW - Financial Risk and Risk Management KW - Capital and Ownership Structure KW - Value of Firms KW - Goodwill KW - Currency KW - Foreign exchange KW - Monetary economics KW - Macroeconomics KW - Finance KW - Financial services law & regulation KW - Exchange rates KW - Currencies KW - Depreciation KW - Financial sector development KW - Exchange rate risk KW - Money KW - National accounts KW - Financial markets KW - Financial regulation and supervision KW - Saving and investment KW - Financial services industry KW - Financial risk management KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:85597370 AB - This paper examines how financial development influences the debt dollarization of nonfinancial firms in a sample of emerging market economies (EMEs). The macroeconomic channels are identified from an optimal portfolio allocation model and assessed empirically using the accounting information of nonfinancial firms from 21 EMEs during 2009–2017. The results show that financial development, measured by the private credit-to-GDP ratio, mainly reduces the influence of exchange rate volatility in determining a firm's debt currency composition, among other channels. Furthermore, the effect of exchange rate volatility becomes statistically insignificant beyond an estimated threshold credit-to-GDP ratio of 100 percent. ER -