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 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.

Bibliographic Details

Main Authors:	Gozzi, Juan Carlos, Levine, Ross, Schmukler, Sergio L.
Language:	English
Published:	World Bank, Washington, DC 2008-08
Subjects:	ACCOUNTING, AGENCY COSTS, AGENCY PROBLEMS, AMOUNT OF CAPITAL, ASSET PRICES, ASSET PRICING, ASSET-BACKED SECURITIES, BALANCE SHEET, BALANCE SHEETS, BANK LENDING, BARRIERS TO CAPITAL, BOND ISSUANCES, BOND ISSUES, BOND MARKETS, BOND SALES, BONDS, BROKERS, CAPITAL ACCOUNT, CAPITAL ACCOUNT LIBERALIZATION, CAPITAL ACCOUNT LIBERALIZATIONS, CAPITAL CONTROLS, CAPITAL FLOWS, CAPITAL MARKETS, CAPITAL RAISING, CAPITAL STRUCTURE, COMMERCIAL PAPER, COMMERCIAL PAPER ISSUES, CORPORATE CAPITAL, CORPORATE DEBT, CORPORATE FINANCE, CORPORATE FINANCING, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE FRAMEWORK, CORPORATE INSIDERS, CORPORATE PERFORMANCE, COST OF CAPITAL, COUNTRY DUMMIES, CRISES IN EMERGING MARKETS, CROSS-BORDER CAPITAL, CROSS-BORDER ISSUES, DEBT, DEBT CAPITAL, DEBT ISSUANCE, DEBT ISSUANCES, DEBT ISSUE, DEBT ISSUES, DEBT MARKET, DEBT MARKETS, DEBT MATURITIES, DEBT MATURITY, DEBT OFFERINGS, DEBT SECURITIES, DEBTS, DEPOSITARY RECEIPTS, DEPOSITORY, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, DIVIDEND, DIVIDEND YIELDS, DOMESTIC BOND, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKETS, DOMESTIC DEBT, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC SECURITIES, DOMESTIC STOCK, DUMMY VARIABLE, DUMMY VARIABLES, DYNAMIC ANALYSIS, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET EQUITY, EMERGING MARKETS, EQUITIES, EQUITY CAPITAL, EQUITY HOLDINGS, EQUITY ISSUANCE, EQUITY ISSUANCES, EQUITY ISSUE, EQUITY ISSUES, EQUITY MARKET, EQUITY MARKETS, EQUITY OFFERINGS, EQUITY PORTFOLIOS, EQUITY SECURITIES, EUROBOND, EXCLUSIONS, EXPENDITURES, EXPLOITATION, EXPORTS, FINANCIAL ADVISORS, FINANCIAL CAPITAL, FINANCIAL CRISES, FINANCIAL DEVELOPMENT, FINANCIAL GLOBALIZATION, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL STUDIES, FINANCIAL SUPPORT, FIRM PERFORMANCE, FIRM VALUATION, FIXED COSTS, FOREIGN ASSETS, FOREIGN CAPITAL, FOREIGN FIRMS, FOREIGN INSTITUTIONAL INVESTORS, FOREIGN INVESTORS, FOREIGN MARKETS, FOREIGN OWNERSHIP, FOREIGN STOCKS, FUTURE RESEARCH, GLOBAL CAPITAL, GLOBAL CAPITAL MARKETS, GLOBALIZATION, GROWTH RATE, HOME COUNTRIES, HOME COUNTRY, HOME MARKET, HOME MARKETS, INCOME, INCOME GROUP, INCOME LEVEL, INDEBTEDNESS, INITIAL PUBLIC OFFERINGS, INSTITUTIONAL INVESTORS, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKET, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL CORPORATE GOVERNANCE, INTERNATIONAL DEBT, INTERNATIONAL DIVERSIFICATION, INTERNATIONAL EQUITY, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL INTEGRATION, INTERNATIONAL INVESTORS, INTERNATIONAL MARKETS, INTERNATIONAL SALES, INTERNATIONAL SECURITIES, INTERNATIONAL TRADE, INVESTING, INVESTMENT BANKS, INVESTMENT BARRIERS, INVESTMENT CAPITAL, INVESTMENT FINANCING, INVESTMENT FUNDS, IPO, ISSUANCE, ISSUANCES, LEGAL ENVIRONMENTS, LOCAL MARKET, LOCAL MARKETS, LOCAL STOCK EXCHANGES, LOCAL STOCK MARKETS, LONG-TERM DEBT, MACROECONOMICS, MARKET COMPETITION, MARKET INTEGRATION, MARKET LIQUIDITY, MARKET PERFORMANCE, MARKET SEGMENTATION, MARKET VALUE, MATURITY, MIDDLE-INCOME ECONOMIES, MORTGAGE, MORTGAGE-BACKED SECURITIES, MUTUAL FUNDS, OWNERSHIP STRUCTURE, PORTFOLIO, PORTFOLIO ALLOCATION, PORTFOLIOS, POTENTIAL INVESTORS, PRIVATE BOND, PRIVATE MARKETS, PRIVATE PLACEMENTS, PROFITABILITY, PROTECTION OF MINORITY SHAREHOLDER, PUBLIC EQUITY, PUBLIC MARKET, PUBLIC MARKETS, PUBLIC SECTOR BOND, REAL ESTATE, REAL ESTATE INVESTMENT, REGULATORY AGENCIES, REGULATORY BARRIERS, RETURN, RETURN ON ASSETS, RETURNS ON EQUITY, RISK SHARING, SALE OF SECURITIES, SECURITIES, SECURITIES MARKETS, SHARE OF CAPITAL, SHARE OF EQUITY, SHORT-TERM DEBT, STOCK EXCHANGE, STOCK EXCHANGES, STOCK MARKET, STOCK MARKETS, STOCK PRICES, STOCK RETURNS, STOCKS, TERMS OF CAPITAL, TOTAL DEBT, TRADE DIVERSION, TRANSACTION, TRANSPARENCY, TRUSTS, VALUATION, VALUATIONS, VOLATILITY, WORLD MARKETS,
Online Access:	http://documents.worldbank.org/curated/en/2008/08/9745120/patterns-international-capital-raisings https://hdl.handle.net/10986/6806
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