Globalization and Firms' Financing Choices : Evidence from Emerging Economies
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,...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/04/437751/globalization-firms-financing-choices-evidence-emerging-economies http://hdl.handle.net/10986/22188 |
| id |
okr-10986-22188 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-221882021-04-23T14:04:06Z Globalization and Firms' Financing Choices : Evidence from Emerging Economies Schmukler, Sergio L. Versperoni, Esteban ACCOUNTING STANDARDS BALANCE OF PAYMENTS BALANCE SHEET BALANCE SHEETS BANKING SECTOR BOOK VALUE BORROWING BUSINESS CYCLES CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CASH FLOWS CORPORATE CONTROL CORPORATE FINANCE CORPORATE GOVERNANCE CREDIT MARKETS CREDIT WORTHINESS DEBT DEFICITS DEVELOPED COUNTRIES DISCOUNT RATE ECONOMETRIC ANALYSIS ECONOMICS LITERATURE EMERGING MARKETS EMPIRICAL EVIDENCE EQUITY CAPITAL EQUITY INVESTMENT EQUITY MARKETS EXPECTED RETURNS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL STRUCTURE FINANCIAL SYSTEMS FOREIGN BONDS FOREIGN EXCHANGE GDP GLOBAL FINANCIAL INTEGRATION GLOBAL MARKETS GLOBALIZATION INTEREST RATES LIQUIDITY MACROECONOMICS MARKET PRICES MORAL HAZARD NET ASSETS PRODUCERS PRODUCTIVITY PROFITABILITY RESERVE REQUIREMENTS RETAINED EARNINGS RISK PREMIUMS SECURITIES TANGIBLE ASSETS TIME DEPOSITS VALUATION 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. 2015-07-16T22:06:02Z 2015-07-16T22:06:02Z 2000-04 Working Paper http://documents.worldbank.org/curated/en/2000/04/437751/globalization-firms-financing-choices-evidence-emerging-economies http://hdl.handle.net/10986/22188 English en_US Policy Research Working Paper;No. 2323 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Latin America & Caribbean East Asia Latin America |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING STANDARDS BALANCE OF PAYMENTS BALANCE SHEET BALANCE SHEETS BANKING SECTOR BOOK VALUE BORROWING BUSINESS CYCLES CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CASH FLOWS CORPORATE CONTROL CORPORATE FINANCE CORPORATE GOVERNANCE CREDIT MARKETS CREDIT WORTHINESS DEBT DEFICITS DEVELOPED COUNTRIES DISCOUNT RATE ECONOMETRIC ANALYSIS ECONOMICS LITERATURE EMERGING MARKETS EMPIRICAL EVIDENCE EQUITY CAPITAL EQUITY INVESTMENT EQUITY MARKETS EXPECTED RETURNS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL STRUCTURE FINANCIAL SYSTEMS FOREIGN BONDS FOREIGN EXCHANGE GDP GLOBAL FINANCIAL INTEGRATION GLOBAL MARKETS GLOBALIZATION INTEREST RATES LIQUIDITY MACROECONOMICS MARKET PRICES MORAL HAZARD NET ASSETS PRODUCERS PRODUCTIVITY PROFITABILITY RESERVE REQUIREMENTS RETAINED EARNINGS RISK PREMIUMS SECURITIES TANGIBLE ASSETS TIME DEPOSITS VALUATION |
| spellingShingle |
ACCOUNTING STANDARDS BALANCE OF PAYMENTS BALANCE SHEET BALANCE SHEETS BANKING SECTOR BOOK VALUE BORROWING BUSINESS CYCLES CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CASH FLOWS CORPORATE CONTROL CORPORATE FINANCE CORPORATE GOVERNANCE CREDIT MARKETS CREDIT WORTHINESS DEBT DEFICITS DEVELOPED COUNTRIES DISCOUNT RATE ECONOMETRIC ANALYSIS ECONOMICS LITERATURE EMERGING MARKETS EMPIRICAL EVIDENCE EQUITY CAPITAL EQUITY INVESTMENT EQUITY MARKETS EXPECTED RETURNS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL STRUCTURE FINANCIAL SYSTEMS FOREIGN BONDS FOREIGN EXCHANGE GDP GLOBAL FINANCIAL INTEGRATION GLOBAL MARKETS GLOBALIZATION INTEREST RATES LIQUIDITY MACROECONOMICS MARKET PRICES MORAL HAZARD NET ASSETS PRODUCERS PRODUCTIVITY PROFITABILITY RESERVE REQUIREMENTS RETAINED EARNINGS RISK PREMIUMS SECURITIES TANGIBLE ASSETS TIME DEPOSITS VALUATION Schmukler, Sergio L. Versperoni, Esteban Globalization and Firms' Financing Choices : Evidence from Emerging Economies |
| geographic_facet |
East Asia and Pacific Latin America & Caribbean East Asia Latin America |
| relation |
Policy Research Working Paper;No. 2323 |
| 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. |
| format |
Working Paper |
| author |
Schmukler, Sergio L. Versperoni, Esteban |
| author_facet |
Schmukler, Sergio L. Versperoni, Esteban |
| author_sort |
Schmukler, Sergio L. |
| title |
Globalization and Firms' Financing Choices : Evidence from Emerging Economies |
| title_short |
Globalization and Firms' Financing Choices : Evidence from Emerging Economies |
| title_full |
Globalization and Firms' Financing Choices : Evidence from Emerging Economies |
| title_fullStr |
Globalization and Firms' Financing Choices : Evidence from Emerging Economies |
| title_full_unstemmed |
Globalization and Firms' Financing Choices : Evidence from Emerging Economies |
| title_sort |
globalization and firms' financing choices : evidence from emerging economies |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2000/04/437751/globalization-firms-financing-choices-evidence-emerging-economies http://hdl.handle.net/10986/22188 |
| _version_ |
1764449830139068416 |