Multilateral Debt Relief through the Eyes of Financial Markets

Raddatz, Claudio

MIT Press

关键词: Multilateral Debt Relief Initiative;    MDRI;    Heavily Indebted Poor Countries;    HIPC;    stock prices;   

DOI  :  10.1162/REST_a_00196

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper conducts an event study of the impact of multilateraldebt relief initiatives announcements on the stock prices of South Africancompanies 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 futuretaxation in the benefited countries and provide evidence of the economicconsequences of multilateral debt relief that is robust to reverse causalitybetween economic performance and the decision to grant debt relief.