외환시장금융불안과 기업투자 간의 관계 분석: 투자의 비가역적인 특성을 고려

An Analysis on the Relationship between Financial Stress in the Foreign Exchange Market and Corporate Investments: Considering Investment Irreversibility Features

Purpose - This study examines the effect of financial stress in the FX Market (FSIFX) on corporate investment depending on a firm’s irreversibility characteristic using firm-level data from 2010 to 2022 covering manufacturing firms listed on the Korea Exchange. Design/Methodology/Approach - To obtain a reliable result, a fixed-effect panel regression was employed as the main estimation method. To explore the irreversible features on FSIFX-investment relationship, we conducted group analysis. The sample was divided into two groups based on the high and low levels of irreversibility, captured by a firm’s capital intensity ratio and sales cyclicality. For each group, the investment sensitivity to FSIFX was estimated and compared. Findings - FSIFX has a negative impact on the investment of manufacturing firms. Furthermore, the negative relationship between FSIFX and investments is prominent when a firms has a high capital intensity ratio or a procyclicality in sales. Research Implications - The empirical findings yield a comprehensive understanding of firm-level investment behavior, offering insightful policy implications. A government-led investment stimulus policy needs to be designed to stabilize the foreign exchange market and reduce the adjustment costs associated with downsizing tangible assets.