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Dynamics of Corporate Performance in Thailand

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  • Ms. Piyabha Kongsamut
  • Mr. V. Haksar

Abstract

Recent crises in emerging markets have highlighted the role of the corporate sector in transmitting financial shocks to the macroeconomy. This paper takes stock of the performance of the Thai corporate sector in emerging from the Asian crisis, and discusses remaining challenges and vulnerabilities. Econometric evidence is presented on the impact of excess leverage on performance. Debt levels, though high, have fallen from post-crisis peaks, while returns and corporate cash flows have stabilized. However, the aggregate picture masks significant firm-level variation, which is analyzed by examining estimated distributions for various indicators across firms.

Suggested Citation

  • Ms. Piyabha Kongsamut & Mr. V. Haksar, 2003. "Dynamics of Corporate Performance in Thailand," IMF Working Papers 2003/214, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/214
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    References listed on IDEAS

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    5. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
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    7. Wiwattanakantang, Yupana, 1999. "An empirical study on the determinants of the capital structure of Thai firms," Pacific-Basin Finance Journal, Elsevier, vol. 7(3-4), pages 371-403, August.
    8. International Monetary Fund, 2000. "Thailand: Selected Issues," IMF Staff Country Reports 2000/021, International Monetary Fund.
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    Cited by:

    1. Mr. Jorge A Chan-Lau & Mr. Toni Gravelle, 2005. "The END: A New Indicator of Financial and Nonfinancial Corporate Sector Vulnerability," IMF Working Papers 2005/231, International Monetary Fund.
    2. Ms. Yingbin Xiao & Mr. Dale F Gray & Cheng Hoon Lim & Michael T. Gapen, 2004. "The Contingent Claims Approach to Corporate Vulnerability Analysis: Estimating Default Risk and Economy-Wide Risk Transfer," IMF Working Papers 2004/121, International Monetary Fund.

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