Patterns of International Capital Raisings
This paper documents several new patterns associated with firms issuing securities in foreign markets that motivate the need for and help guide future research. Besides noting that these international capital raisings grew almost four-fold from 199...
Main Authors: | , , |
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2008/08/9745120/patterns-international-capital-raisings http://hdl.handle.net/10986/6806 |
Summary: | This paper documents several new
patterns associated with firms issuing securities in foreign
markets that motivate the need for and help guide future
research. Besides noting that these international capital
raisings grew almost four-fold from 1991 to 2005, accounting
for 35 percent of all capital raised through security
issuances, the paper has three main findings. First, a large
and growing fraction of capital raisings, especially debt
issuances, occurs in international markets, but a very small
number of firms accounts for the bulk of international
capital raisings, highlighting the distributional
implications of financial globalization. Second, changes in
firm performance following equity and debt issuances in
international markets are qualitatively similar to those
following domestic issuances, suggesting that capital
raisings abroad are not intrinsically different from
domestic ones. Third, after firms start accessing
international markets, they significantly increase the
amount raised in domestic markets, suggesting that
international and domestic markets are complements. |
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