Lee, SeungeunThis dissertation studies corporate real and financial decisions in responses to the global macroeconomic environment. In Chapter 1, I study the dynamic relation between dollar invoicing in exports, dollar borrowing, and the global financial cycle. I document a positive co-movement between dollar invoicing in exports and firms’ dollar borrowing, and also a positive link between dollar borrowing and the VIX. I write down a model consistent with these correlations: during global financial downturns when the VIX is high and dollar liquidity is tight, firms increase dollar invoicing to secure dollar revenues, facilitating dollar borrowing with these revenues as collateral. The model shows that an endogenous increase in dollar invoicing amplifies the responsiveness of dollar borrowing to positive global risk shocks (or safety shocks), affecting responses in variables like UIP premium, exchange rates, and foreign asset holdings. Empirical evidence from a comparison between Turkey and Thailand supports these insights. Chapter 2 presents both empirical and theoretical analyses about the effects of macroprudential policy measures (MPMs). I first examine the impacts of MPMs on the response of corporate loans to a U.S. monetary expansion, using panel data constructed from Dealscan database, IMF macroprudential policy index (MPI), and other macro variables. I find that MPMs attenuate the increase in corporate loans responding to a U.S. monetary expansion, but the effects are dampened as the country’s share of foreign loans goes up. This is because firms borrow more across borders with a decrease in the U.S. rate but MPMs cannot regulate the international borrowing. The introduction of capital flow management measures (CFMs) helps MPMs in managing corporate loans since they regulate capital inflows directly. My findings from a two- period model are consistent with the empirical evidence. I find that a special case of MPM, concentration limits, reduces the level and the growth of corporate loans when there is a decrease in the global interest rate. However, the effects of the MPM are dampened when firms are allowed to increase foreign borrowing, which can be resolved with the introduction of CFMs. An additional constraint imposed by a CFM sets a lower bound for a measure of the effectiveness of MPMs by limiting firms from borrowing overly from abroad.enDissertationEconomics