The Financing and Growth of Firms in China and India : Evidence from Capital Markets

This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using new data on domestic and international capital raising and firm performance, it finds that financial market activity has expanded less since the 1990s than aggregate figures sugges...

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Main Authors:	Didier, Tatiana, Schmukler, Sergio L.
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2013
Subjects:	access to finance bond markets capital market development capital raising firm dynamics firm size distribution stock markets
Online Access:	http://hdl.handle.net/10986/16211

id	okr-10986-16211
recordtype	oai_dc
spelling	okr-10986-162112021-04-23T14:03:28Z The Financing and Growth of Firms in China and India : Evidence from Capital Markets Didier, Tatiana Schmukler, Sergio L. access to finance bond markets capital market development capital raising firm dynamics firm size distribution stock markets This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using new data on domestic and international capital raising and firm performance, it finds that financial market activity has expanded less since the 1990s than aggregate figures suggest. Relatively few firms raise capital and even fewer attract most of the financing. Moreover, firms that issue equity or bonds are different and behave differently from other publicly listed firms. Among other things, they are typically larger and grow faster. The differences between users and nonusers exist before the capital raising, are associated with the probability of raising capital, and become more pronounced afterward. The size distribution of issuing firms shifts more over time than the distribution of those that do not issue, suggesting little convergence in size among listed firms. 2013-11-04T20:08:19Z 2013-11-04T20:08:19Z 2013-07-05 Journal Article Journal of International Money and Finance 0261-5606 http://hdl.handle.net/10986/16211 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Elsevier Publications & Research :: Journal Article Publications & Research China India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	access to finance bond markets capital market development capital raising firm dynamics firm size distribution stock markets
spellingShingle	access to finance bond markets capital market development capital raising firm dynamics firm size distribution stock markets Didier, Tatiana Schmukler, Sergio L. The Financing and Growth of Firms in China and India : Evidence from Capital Markets
geographic_facet	China India
description	This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using new data on domestic and international capital raising and firm performance, it finds that financial market activity has expanded less since the 1990s than aggregate figures suggest. Relatively few firms raise capital and even fewer attract most of the financing. Moreover, firms that issue equity or bonds are different and behave differently from other publicly listed firms. Among other things, they are typically larger and grow faster. The differences between users and nonusers exist before the capital raising, are associated with the probability of raising capital, and become more pronounced afterward. The size distribution of issuing firms shifts more over time than the distribution of those that do not issue, suggesting little convergence in size among listed firms.
format	Journal Article
author	Didier, Tatiana Schmukler, Sergio L.
author_facet	Didier, Tatiana Schmukler, Sergio L.
author_sort	Didier, Tatiana
title	The Financing and Growth of Firms in China and India : Evidence from Capital Markets
title_short	The Financing and Growth of Firms in China and India : Evidence from Capital Markets
title_full	The Financing and Growth of Firms in China and India : Evidence from Capital Markets
title_fullStr	The Financing and Growth of Firms in China and India : Evidence from Capital Markets
title_full_unstemmed	The Financing and Growth of Firms in China and India : Evidence from Capital Markets
title_sort	financing and growth of firms in china and india : evidence from capital markets
publisher	Elsevier
publishDate	2013
url	http://hdl.handle.net/10986/16211
_version_	1764432517351342080

The Financing and Growth of Firms in China and India : Evidence from Capital Markets

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