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Author: Xian Gu
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
We examine whether investor protection affects capital markets in terms of the development of corporate bond markets versus that of equity markets. Using a dataset of 42 countries, we show that in countries with stronger creditor rights, corporate bond markets are more developed than equity markets. In opposition, we find only weak evidence that in countries with stronger shareholder protection, equity markets are more developed than corporate bond markets. Additionally, we find that the effects of financial reforms on capital markets are strongly dependent on the strength of investor protections in a given country and information disclosure.
Author: Xian Gu
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
We examine whether investor protection affects capital markets in terms of the development of corporate bond markets versus that of equity markets. Using a dataset of 42 countries, we show that in countries with stronger creditor rights, corporate bond markets are more developed than equity markets. In opposition, we find only weak evidence that in countries with stronger shareholder protection, equity markets are more developed than corporate bond markets. Additionally, we find that the effects of financial reforms on capital markets are strongly dependent on the strength of investor protections in a given country and information disclosure.
Author: Paul-Olivier Klein
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
This paper appraises the relative impact of creditor information and creditor rights on corporate bond issues. I employ a large panel of 3,969 bond issuers from 54 countries, between 2013 and 2017. I constantly find that an increase in creditor information is associated with an increase in the amounts of bonds issued. On the opposite, I document a very limited impact of creditor protection. Considering both simultaneously, only the positive impact of information persists, supporting a primal role of information on bond markets. I show that the positive effect of information originates from both the supply- and demand-side of the bond market, with lower coupon rates, less restrictive covenants, longer maturities and more frequent issues. I further document how creditor information alleviates issues stemming from firm's opacity and firm's risk. Results are robust to different specifications and robustness tests.
Author: Oskar Kowalewski
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
We investigate the development of corporate bond markets in 10 Asian countries from 1995 to 2014. Using panel data on the market size and total issue of bonds by financial and non-financial companies, we confirm that macroeconomic and institutional factors are related to the depth of the market. In addition, we show that the issuance of bonds is also determined by other factors that strongly depend on the issuer type. We show that creditor rights and institutional quality are important in explaining the issuance of bonds by financial institutions. Furthermore, we determine a strong positive association between the level of domestic credit and the market and issue size of corporate bonds. In our opinion, the results indicate that there is a positive relationship between the development of the corporate bond market and the banking sector. These findings indicate that increased demand for bank loans induced the issuance of bonds by financial institutions which, in turn, may have led to the development of corporate bond markets in Asia.
Author: Paul M. Dickie
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 46
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Book Description
Author: Douglas W. Arner
Publisher: Springer Science & Business Media
ISBN: 0387250905
Category : Business & Economics
Languages : en
Pages : 328
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Book Description
This volume comprises studies by leading research scholars in the United States and Asia on Asia’s debt capital markets. The book is unique in drawing upon the research, experience and perspectives of experts from the academic, legal, governmental and practical investment fields. They assess the risks and opportunities, and strategies for developing these markets. The authors adopt a multidisciplinary approach, encompassing economics, finance and law.
Author: Julius Caesar Parrenas
Publisher: Flipside Digital Content Company Inc.
ISBN: 9814517461
Category : Business & Economics
Languages : en
Pages : 82
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Book Description
This conference report provides a unique overview of the development of local currency bond markets in the Asia-Pacific region and cross-border investment and issuance in these markets. It brings together insights of the region's leading capital market regulators, private sector market players, finance and central bank officials and experts from academe and international development organizations, who have gathered together to assess the extent to which the region's bond markets have developed, and map out a regional strategy based on public-private sector partnership that promises to address key policy reform and capacity-building issues.This report concludes that a few emerging markets in the region have made significant advances, but many others need to undertake fundamental reforms to achieve adequate market depth and liquidity and develop an enabling regulatory framework. Successfully undertaking these reforms requires intensive regional cooperation to help address obstacles in individual economies and facilitate greater cross-border activity in the region's bond markets. Coordination is also needed to ensure the consistency of parallel initiatives being undertaken within various regional bodies, particularly APEC, ASEAN Plus Three and EMEAP, to develop a regional bond market.
Author: Oskar Kowalewski
Publisher:
ISBN:
Category : Bonds
Languages : en
Pages : 57
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Book Description
We investigate the development of corporate bond markets in 10 Asian countries from 1995 to 2014. Using data on outstanding value and total issue of bonds by financial and non-financial companies, we confirm that macroeconomic and institutional factors are related to the depth of the corporate bond market. We show that creditor rights and institutional quality are important in explaining the size of outstanding value and issuance of corporate bonds. Furthermore, we determine a strong positive association between the level of domestic credit and the outstanding value and issue of corporate bonds. From the results, we surmise that there is a positive relationship between the development of the corporate bond market and the banking sector. These findings indicate that increased demand for bank loans induced the issuance of bonds by financial institutions, which, in turn, might have led to the development of corporate bond markets in Asia. Finally, we document that the development of corporate bond markets might have helped mitigate the outcome of the financial crisis of 2008 in Asia.
Author: Yaxuan Qi
Publisher:
ISBN:
Category :
Languages : en
Pages : 45
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Book Description
We examine how legal creditor rights are related to debt financing and corporate investment over the business cycle. Using firm-level data from 40 countries, we find that creditor rights are associated with greater debt financing and investment during economic downturns, but creditor rights have a significantly smaller effect during expansions. The beneficial effects of creditor rights during recessions are stronger for firms that are more likely to have severe shareholder-bondholder agency problems. We also find that during recessions (relative to expansions) strong creditor rights are associated with a smaller decline in net capital flows. Our findings are consistent with credit market frictions increasing during recessions, and with stronger creditor rights decreasing the negative effects of these frictions. Overall, the results suggest that better creditor protection laws help moderate the decline in debt financing and investment during recessions.
Author: Li L. Ong
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451861716
Category :
Languages : en
Pages : 25
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Book Description
The objective of this paper is to discuss the key issues relating to the development of local corporate bond markets. We examine the requirements for local corporate bond market development, and compare and contrast experiences across both mature and emerging markets. We suggest that core aspects such as benchmarking, corporate governance and disclosure, credit risk pricing, the availability of reliable trading systems, and the development of hedging instruments are fundamental for improving the breadth and depth of corporate debt markets. The demand and supply of corporate bonds are dependent on factors such as the investor base, both local and foreign, and government policies toward the issuance process and associated costs, as well as the taxation regime. The sequencing of reforms is key to market development.
Author: Mr.Luc Laeven
Publisher: International Monetary Fund
ISBN: 1475505051
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
We update the widely used banking crises database by Laeven and Valencia (2008, 2010) with new information on recent and ongoing crises, including updated information on policy responses and outcomes (i.e. fiscal costs, output losses, and increases in public debt). We also update our dating of sovereign debt and currency crises. The database includes all systemic banking, currency, and sovereign debt crises during the period 1970-2011. The data show some striking differences in policy responses between advanced and emerging economies as well as many similarities between past and ongoing crises.
