Capital Market Financing, Firm Growth, and Firm Size Distribution
How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution? To evaluate these questions, a new da...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/07/24744318/capital-market-financing-firm-growth-firm-size-distribution http://hdl.handle.net/10986/22234 |
| Summary: | How many and which firms issue equity
and bonds in domestic and international markets, how do
these firms grow relative to non-issuing firms, and how does
firm performance vary along the firm size distribution? To
evaluate these questions, a new data set is constructed by
matching data on firm-level capital raising activity with
balance sheet data for 45,527 listed firms in 51 countries.
Three main patterns emerge from the analysis. (1) Only a few
large firms issue equity or bonds, and among them a small
subset has raised a large proportion of the funds raised
during the 1990s and 2000s. (2) Issuers grow faster than
non-issuers in assets, sales, and employment, that is, firms
do not simply use securities markets to adjust their
financial accounts. (3) The firm size distribution of
issuers evolves differently from that of non-issuers,
tightening among issuers and widening among non-issuers. |
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