Globalization and Firms' Financing Choices
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.
Saved in:
Bibliographic Details
| Main Authors: |
Versperoni, Esteban,
Schmukler, Sergio L. |
|---|
| Format: | Working Paper
biblioteca
|
|---|
| Language: | English
en_US |
|---|
| Published: |
World Bank, Washington, DC
2000-04
|
|---|
| Subjects: | 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, |
|---|
| Online Access: | http://documents.worldbank.org/curated/en/2000/04/437751/globalization-firms-financing-choices-evidence-emerging-economies
https://hdl.handle.net/10986/22188
|
|---|
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
|---|
