Globalization and Firms' Financing Choices: Evidence from Emerging Economies PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Globalization and Firms' Financing Choices: Evidence from Emerging Economies PDF full book. Access full book title Globalization and Firms' Financing Choices: Evidence from Emerging Economies by Sergio L. Schmukler. Download full books in PDF and EPUB format.
Author: Sergio L. Schmukler
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 32
Get Book Here
Book Description
This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access capital markets. We find that debt-equity rations do not increase after financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises
Author: Sergio L. Schmukler
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 32
Get Book Here
Book Description
This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access capital markets. We find that debt-equity rations do not increase after financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises
Author: Sergio L. Schmukler
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
Get Book Here
Book Description
This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access international capital markets. We find that debt-equity ratios do not increase after financial liberalization. Debt maturity shortens for the average firm when countries undertake financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises.
Author: Christian Grootaert
Publisher:
ISBN:
Category :
Languages : en
Pages : 74
Get Book Here
Book Description
The authors investigate whether integration with global markets affects the financing choices of firms from East Asia and Latin America. Using firm-level data for the 1980s and 1990s, they study how leverage ratios, the structure of debt maturity, and sources of financing change when economies are liberalized and when firms gain access to international equity and bond markets. The evidence shows that integration with world financial markets has uneven effects. On the one hand, debt maturity for the average firm shortens when countries undertake financial liberalization. On the other hand, domestic firms that actually participate in international markets, get better financing opportunities, and extend their debt maturity. Moreover, firms in economies with deeper domestic financial systems are affected less by financial liberalization. Finally, they show that leverage ratios increase during times of crisis. In an appendix, they analyze the previously unstudied case of Argentina, which experienced sharp financial liberalization, and was hit hard by all recent global crises.
Author: Sergio Schmukler
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
Get Book Here
Book Description
Author:
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 74
Get Book Here
Book Description
Author: SERGIO SCHMUKLER AND ESTEBAN VESPERONI
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
Get Book Here
Book Description
Author: Augusto de la Torre
Publisher: World Bank Publications
ISBN: 0821365444
Category : Business & Economics
Languages : en
Pages : 232
Get Book Here
Book Description
Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.
Author: Adrian Alter
Publisher: International Monetary Fund
ISBN: 1475560494
Category : Business & Economics
Languages : en
Pages : 49
Get Book Here
Book Description
Corporate debt in emerging markets has risen significantly in recent years amid accommodative global financial conditions. This paper studies the relationship of leverage growth in emerging market (EM) firms to U.S. monetary conditions, and more broadly, to global financial conditions. We find that accommodative U.S. monetary conditions are reliably associated with faster EM leverage growth during the past decade. Specifically, a 1 percentage point decline in the U.S. policy rate corresponds to an appreciable increase in EM leverage growth of 9 basis points, on average (relative to the sample average leverage growth of 35 basis points per year). This impact is more pronounced for sectors dependent on external financing, for SMEs, and for firms in more financially open EMs with less flexible exchange rates. The findings suggest that global financial conditions affect EM firms’ leverage growth in part by influencing domestic interest rates and by relaxing corporate borrowing constraints.
Author: Najeb Masoud
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
Get Book Here
Book Description
This study attempts to extend knowledge of the role of financial market development in the financing choice of firms in developing countries using cross-sectional regression estimator with a dynamic-panel approach for 219 firms listed on the three emerging countries during the period 1990-2012. Capital structure studies have generally been aimed at studying the determinants of optimal leverage. Empirically, the focus is, however, on studying the association between observed leverage and a set of explanatory variables. Various theories, namely, the trade-off, pecking order and agency theories, are deployed to explain and predict the signs and significance of each factor identified by Ragan and Zingales (1995) and Booth et al. (2001). The pioneering work of Modigliani and Millar, and many scholars revealed that the financial leverage is one of the most influencing factors in determining the firm growth. The results suggest that liquidity and profitability are negatively and significantly related to the leverage ratios, while the firm size is positively and significantly related to leverage. Leverage is negatively related with tangibility in two emerging countries. Therefore, growth opportunities are positively related to book value leverage and negatively related to market leverage in all three emerging countries. However, our results generally indicate that both the trade-off and the pecking order theories can explain three emerging firms' financing decisions. These results indicate that high price-earnings ratios and high interest rates will cause firms to choose equity over debt, as both of these factors reduce the cost of equity finance. Furthermore, the results suggest an unimportant role for economic growth and inflation rates in explaining the variation in debt-equity ratios. Results show that further development in the stock market indicators are negatively and significantly related to the leverage ratios in emerging countries (Jordan, Kuwait and Malaysia) suggesting that as equity markets in these countries become more developed and their liquidity improves, while banking sector development favours debt financing over equity financing, as one would expect.
Author: Robert E. Litan
Publisher: Brookings Institution Press
ISBN: 9780815706885
Category : Political Science
Languages : en
Pages : 382
Get Book Here
Book Description
This annual series from the Brookings Institution and the Financial Institutions Center at the Wharton School provides timely and insightful analyses of the financial services industry. Contents: The Future of Securities Exchanges Ruben Lee The Structure of the U.S. Equity Markets Marshall E. Blume Changes in the Ownership and Governance of Securities Exchanges: Causes and Consequences Benn Steil Wall Street's Credibility Problem: Misaligned Incentives and Dubious Fixes? Leslie Boni and Kent L. Womack The Immediacy Implications of Exchange Organization James T. Moser The Future of Stock Exchanges in Emerging Economies: Evolution and Prospects Stijn Claessens, Daniela Kingebiel, and Sergio L. Schmukler ISDA, NASD, CFMA, and SDNY: The Four Horsemen of Derivatives Regulation? Frank Partnoy The Future of the Foreign Exchange Market Richard K. Lyons The Future of the New Issues Market Jay R. Ritter Implications of Auction Theory for New Issues Markets Lawrence M. Asubel
