Firm Financing and Growth in the Arab Region
This paper documents how firms in Arab countries issue equity, corporate bonds, and syndicated loans in domestic and international markets to obtain financing and grow. Using a new data set on issuance activity and firm performance, the paper finds...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26584763/firm-financing-growth-arab-region http://hdl.handle.net/10986/24837 |
| Summary: | This paper documents how firms in Arab
countries issue equity, corporate bonds, and syndicated
loans in domestic and international markets to obtain
financing and grow. Using a new data set on issuance
activity and firm performance, the paper finds that capital
raising through these markets has grown rapidly since the
early 1990s and involved an increasing number of issuing
firms. Whereas the amounts raised (relative to gross
domestic product) in equity and loan markets stand well with
respect to international standards, bond issuance activity
lags behind. Yet, bond financing has gained importance over
time. Equity issuances primarily take place domestically,
while bonds and loans are mostly issued internationally,
display long maturities, and entail low levels of credit
risk. Issuing firms are larger, grow faster, and are more
leveraged than non-issuers. While issuers tend to be larger
ex ante than non-issuers, the size gap between them seems to
widen over time. |
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