Sovereign default risk in emerging markets can impact private companies' ability to get money from international sources. By looking at data from 31 countries, researchers found that when a country is at risk of defaulting on its debt, it becomes harder for businesses to borrow money or sell stocks abroad. This was true during past debt crises and also from 1993 to 2007. The way a crisis is resolved matters, and if a country defaults on private lenders, it has worse effects on businesses than defaulting on official lenders.