Nonfinancial Firms in Latin America: A Source of Vulnerability?

Gonzalez, Maria de los Angeles

doi:10.5089/9781475513486.001

Cited by 8 publications

(2 citation statements)

References 16 publications

(6 reference statements)

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“…First of all, foreign counterparties represent a source of funding, especially in the long-term, for real and financial firms; a sudden stop in the flow of these resources might impose important limitations to economic activity. Gonzalez (2012) highlights this point and illustrates the risks that may be posed by the reliance on external financing of some Latin American countries (Brazil, Chile, Colombia, Mexico and Peru) during the period 2000-2011.…”

Section: External Sectormentioning

confidence: 83%

A Composite Indicator of Systemic Stress (CISS) for Colombia

Cabrera-Rodríguez¹,

Hurtado-Guarín²,

Morales³

et al. 2014

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Section: External Sectormentioning

confidence: 83%

A Composite Indicator of Systemic Stress (CISS) for Colombia

Cabrera-Rodríguez¹,

Hurtado-Guarín²,

Morales³

et al. 2014

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“…Understanding the impact of commodity price fluctuations is important for commodity exporting countries as it potentially weakens the domestic financial stability and corporate sector vulnerability (Kinda et al, 2016;Gonzalez, 2012;Gelos andUstyugova, 2012, andPresbitero, 2018). For Indonesia, the commodity-based industry of crude palm oil (CPO) contributes 15 per cent of non-oil exports; so, it is crucial to understand how fluctuations in CPO price affect financial stability.…”

Section: Introductionmentioning

confidence: 99%

Crude palm oil prices and default risk: an analysis of Indonesia’s listed agricultural firms

Abubakar

Purwoko

Werdaningtyas

et al. 2019

SEF

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Purpose This study aims to examine how crude palm oil (CPO) price impacts corporate default risk (CDR) of agricultural firms in Indonesia’s palm oil industry. Design/methodology/approach By applying a dynamic panel regression on listed CPO-based firms, the authors find that CPO price fluctuations are insignificant in explaining CDR. Findings The main determinants of CDR are internal factors, namely, excess stock market returns and return on assets. External factors do not play any role in influencing the CDR in the case of Indonesia. The results highlight the importance of completing risk analysis at the macro level with firm-specific factors. Research limitations/implications The contributions aside, an important limitation of this study is that there is a small sample of listed firms. Most of these firms have the ability to mitigate risks. Therefore, further studies are needed to identify the default predictions for non-listed firms. Practical implications In the context of macro prudential policy in Indonesia, the findings imply that financial stability surveillance needs to be carried out in two areas: macroeconomic indicators and firm-specific indicators. Given the lack of listed CPO firms in Indonesia, the object of surveillance should focus on not only listed firms but also non-listed firms with large bank loans. Originality/value This study highlights the importance of completing risk analysis at the macro level with firm-specific factors in Indonesia as commodity exporting country.

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El ahorro y la inversión corporativos en América Latina. Una indagación a nivel firma

2017

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Realizamos un examen a nivel firma de la inversión y, en especial, el resultado financiero neto del sector privado no financiero de la región. Documentamos un superávit financiero neto típico de períodos de crisis y mayoritariamente en ascenso en los últimos años. A partir de un análisis de estadística descriptiva delineamos las características más sobresalientes de este superávit y ofrecemos una primera explicación sobre la base de factores macro, microeconómicos y financieros, que es testeada con un modelo multinivel.

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Nonfinancial Firms in Latin America: A Source of Vulnerability?

Cited by 8 publications

References 16 publications

A Composite Indicator of Systemic Stress (CISS) for Colombia

A Composite Indicator of Systemic Stress (CISS) for Colombia

Crude palm oil prices and default risk: an analysis of Indonesia’s listed agricultural firms

El ahorro y la inversión corporativos en América Latina. Una indagación a nivel firma

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