Publication:
Multilateral Debt Relief through the Eyes of Financial Markets

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dc.contributor.authorRaddatz, Claudio
dc.date.accessioned2012-03-19T19:09:25Z
dc.date.available2012-03-19T19:09:25Z
dc.date.issued2009-03-01
dc.description.abstractThe economic benefits of debt relief for recipient countries have been the subject of arduous debate, at least partly motivated by the difficulty of identifying the causal effect of debt relief on economic performance-given that performance itself may drive the decision to grant relief. This paper conducts an event study to assess the economic consequences of multilateral debt relief for recipient countries that is robust to these reverse causality issues. It estimates the response of the stock prices of South African multinationals with subsidiaries in those countries to the announcement of debt relief initiatives, and shows that stock prices exhibit a significant increase above those of other firms, especially around the launching of the recent Multilateral Debt Relief Initiative. The improvement in financial markets' assessment of the value of these multinationals is consistent with lower expected levels of future taxation in the recipient countries. Overall, the results are consistent with the "debt overhang" argument for debt relief.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090323094828
dc.identifier.doi10.1596/1813-9450-4872
dc.identifier.urihttps://hdl.handle.net/10986/4067
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 4872
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAFFILIATES
dc.subjectASSETS
dc.subjectBASIS POINTS
dc.subjectBILATERAL CREDITORS
dc.subjectBUSINESS TAXES
dc.subjectBUYBACK
dc.subjectCAPITAL FORMATION
dc.subjectCHECKS
dc.subjectCOLLECT DEBT
dc.subjectCOMMERCIAL CREDITORS
dc.subjectCOMMERCIAL LOANS
dc.subjectCOMMODITIES
dc.subjectCONSUMER
dc.subjectCONSUMER GOODS
dc.subjectCORPORATE GOVERNANCE
dc.subjectCREDITOR
dc.subjectCREDITOR RIGHTS
dc.subjectCREDITORS
dc.subjectCURRENT DEBT
dc.subjectDEBT
dc.subjectDEBT ACCUMULATION
dc.subjectDEBT BURDEN
dc.subjectDEBT BURDENS
dc.subjectDEBT FORGIVENESS
dc.subjectDEBT LEVELS
dc.subjectDEBT OBLIGATIONS
dc.subjectDEBT OVERHANG
dc.subjectDEBT PROBLEMS
dc.subjectDEBT REDUCTION
dc.subjectDEBT RELIEF
dc.subjectDEBT RELIEF INITIATIVE
dc.subjectDEBT RELIEF INITIATIVES
dc.subjectDEBT RELIEF PACKAGE
dc.subjectDEBT SERVICE
dc.subjectDEBT STOCK
dc.subjectDEBT STOCK REDUCTIONS
dc.subjectDEBT SUSTAINABILITY
dc.subjectDEBT SUSTAINABILITY ANALYSIS
dc.subjectDEBTOR
dc.subjectDEBTOR COUNTRIES
dc.subjectDEBTS
dc.subjectDEPENDENT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT BANK
dc.subjectDIVIDEND
dc.subjectDUMMY VARIABLE
dc.subjectEARNINGS
dc.subjectECONOMIC COSTS
dc.subjectEFFECT OF DEBT
dc.subjectEMERGING MARKETS
dc.subjectEMERGING STOCK MARKET
dc.subjectEMERGING STOCK MARKETS
dc.subjectEMPLOYMENT
dc.subjectEQUIPMENT
dc.subjectEXCESSIVE DEBT
dc.subjectEXPENDITURE
dc.subjectEXPROPRIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SUPPORT
dc.subjectFOREIGN CREDITORS
dc.subjectGLOBAL MARKETS
dc.subjectGOVERNMENT REVENUE
dc.subjectHOLDINGS
dc.subjectHOST COUNTRY
dc.subjectHUMAN CAPITAL
dc.subjectILLIQUIDITY
dc.subjectIMPACT OF DEBT
dc.subjectIMPLICIT TAX
dc.subjectINCOME
dc.subjectINCOME TAXES
dc.subjectINDEBTED
dc.subjectINDEBTED POOR COUNTRIES
dc.subjectINFORMATION TECHNOLOGY
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL FINANCE
dc.subjectINVESTMENT CORPORATION
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT PROJECTS
dc.subjectLEVELS OF DEBT
dc.subjectLIFE ASSURANCE
dc.subjectLOCAL GOVERNMENTS
dc.subjectLOW INCOME
dc.subjectLOW- INCOME
dc.subjectLOW-INCOME
dc.subjectLYON
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMICS
dc.subjectMAJOR DEBT
dc.subjectMARKET CAPITALIZATION
dc.subjectMARKET RETURN
dc.subjectMARKET TURNOVER
dc.subjectMASSIVE DEBT
dc.subjectMONETARY FUND
dc.subjectMULTILATERAL DEBT
dc.subjectMULTILATERAL DEBT RELIEF
dc.subjectOPEN ECONOMIES
dc.subjectPAR VALUE
dc.subjectPARENT COMPANIES
dc.subjectPARENT COMPANY
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIO
dc.subjectPRESS COVERAGE
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE INVESTMENT
dc.subjectPROBABILITY
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC GOODS
dc.subjectREAL EXCHANGE RATE
dc.subjectRECIPIENT COUNTRIES
dc.subjectREGIONAL DEVELOPMENT BANKS
dc.subjectRENTS
dc.subjectREPAYMENT
dc.subjectRESEARCH ASSISTANCE
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectSALES
dc.subjectSECURITIES
dc.subjectSENIOR
dc.subjectSHARE PRICES
dc.subjectSOVEREIGN DEBT
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCK MARKETS
dc.subjectSTOCK OF DEBT
dc.subjectSTOCK RETURN
dc.subjectSTOCK RETURNS
dc.subjectSTOCKS
dc.subjectSUBSIDIARIES
dc.subjectSUBSIDIARY
dc.subjectSUBSTANTIAL DEBT
dc.subjectSUBSTANTIAL DEBT RELIEF
dc.subjectTAXATION
dc.subjectTRADING
dc.subjectTYPE OF DEBT
dc.subjectVALUABLE
dc.subjectVALUATION
dc.subjectVALUE OF DEBT
dc.subjectWORLD MARKETS
dc.subjectWORTH
dc.titleMultilateral Debt Relief through the Eyes of Financial Marketsen
dspace.entity.typePublication
okr.crossref.titleMultilateral Debt Relief Through The Eyes Of Financial Markets
okr.date.doiregistration2025-04-10T12:19:56.376442Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090323094828
okr.guid841371468163479485
okr.identifier.doi10.1596/1813-9450-4872
okr.identifier.externaldocumentum000158349_20090323094828
okr.identifier.internaldocumentum10372271
okr.identifier.reportWPS4872
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/03/23/000158349_20090323094828/Rendered/PDF/WPS4872.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/21438
okr.sectorFinance :: General finance sector
okr.themeFinancial and private sector development :: Small and medium enterprise support
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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