["Journal of Money, Credit and Banking, Volume 58, Issue 4, Page 1167-1199, June 2026. ", "\nAbstract\nUsing firm‐level data from emerging markets, we find that the dollar debt issuance significantly increases issuers’ risk‐taking. While the dollar debt issuance significantly increases issuers’ investment spending, it reduces their investment efficiency substantially. We also show that macroprudential policies can help mitigate the risk‐taking effect of dollar debt issuance. In addition, we provide evidence that nonissuers exhibit increased risk‐taking when faced with rising intraindustry competition pressure from issuers. Overall, the cross‐sectional risk distributions at the industry level are more tilted toward the downside.\n"]