Multilateral Debt Relief through the Eyes of Financial Markets

Multilateral Debt Relief through the Eyes of Financial Markets

This paper conducts an event study of the impact of multilateral debt relief initiatives announcements on the stock prices of South African companies with subsidiaries in countries benefited by these initiatives. It shows that these prices increase significantly above those of other firms, espec...

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Bibliographic Details
Main Author: Raddatz, Claudio
Format: Journal Article
Language:en_US
Published: MIT Press 2015
Subjects:
Multilateral Debt Relief Initiative
MDRI
Heavily Indebted Poor Countries
HIPC
stock prices
subsidiaries
foreign direct investment
Online Access:http://hdl.handle.net/10986/21438
id okr-10986-21438
recordtype oai_dc
spelling okr-10986-214382021-04-23T14:04:02Z Multilateral Debt Relief through the Eyes of Financial Markets Raddatz, Claudio Multilateral Debt Relief Initiative MDRI Heavily Indebted Poor Countries HIPC stock prices subsidiaries foreign direct investment This paper conducts an event study of the impact of multilateral debt relief initiatives announcements on the stock prices of South African companies with subsidiaries in countries benefited by these initiatives. It shows that these prices increase significantly above those of other firms, especially around the launching of the Multilateral Debt Relief Initiative. These price increases are consistent with lower expected levels of future taxation in the benefited countries and provide evidence of the economic consequences of multilateral debt relief that is robust to reverse causality between economic performance and the decision to grant debt relief. 2015-02-12T22:15:19Z 2015-02-12T22:15:19Z 2011-11 Journal Article Review of Economics and Statistics 0034-6535 http://hdl.handle.net/10986/21438 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank MIT Press Publications & Research Publications & Research :: Journal Article Sub-Saharan Africa South Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic Multilateral Debt Relief Initiative
MDRI
Heavily Indebted Poor Countries
HIPC
stock prices
subsidiaries
foreign direct investment
spellingShingle Multilateral Debt Relief Initiative
MDRI
Heavily Indebted Poor Countries
HIPC
stock prices
subsidiaries
foreign direct investment
Raddatz, Claudio
Multilateral Debt Relief through the Eyes of Financial Markets
geographic_facet Sub-Saharan Africa
South Africa
description This paper conducts an event study of the impact of multilateral debt relief initiatives announcements on the stock prices of South African companies with subsidiaries in countries benefited by these initiatives. It shows that these prices increase significantly above those of other firms, especially around the launching of the Multilateral Debt Relief Initiative. These price increases are consistent with lower expected levels of future taxation in the benefited countries and provide evidence of the economic consequences of multilateral debt relief that is robust to reverse causality between economic performance and the decision to grant debt relief.
format Journal Article
author Raddatz, Claudio
author_facet Raddatz, Claudio
author_sort Raddatz, Claudio
title Multilateral Debt Relief through the Eyes of Financial Markets
title_short Multilateral Debt Relief through the Eyes of Financial Markets
title_full Multilateral Debt Relief through the Eyes of Financial Markets
title_fullStr Multilateral Debt Relief through the Eyes of Financial Markets
title_full_unstemmed Multilateral Debt Relief through the Eyes of Financial Markets
title_sort multilateral debt relief through the eyes of financial markets
publisher MIT Press
publishDate 2015
url http://hdl.handle.net/10986/21438
_version_ 1764448262292504576

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