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 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.

Bibliographic Details

Main Authors:	Levine, Ross, Didier, Tatiana, Schmukler, Sergio L.
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-07
Subjects:	DOMESTIC BOND, DEPOSIT, CAPITAL MARKETS, INTERNATIONAL FINANCIAL INTEGRATION, EQUITY ISSUANCE, LIABILITY, FOREIGN CAPITAL, ACCOUNTING, INFORMATIONAL ASYMMETRIES, INTERNATIONAL CAPITAL, STOCK, VALUATION, INTEREST, DUMMY VARIABLES, EMERGING ECONOMIES, PRIVATE CREDIT, EXCHANGE, STOCK MARKET, ISSUANCES, LIQUIDITY, EQUITY MARKET, POLITICAL ECONOMY, MATURITY STRUCTURE, DEBT ISSUANCES, MARKET SIZE, CAPITAL STRUCTURE, EQUITY FINANCING, DEPOSIT MONEY BANKS, BONDS, DISCOUNT, ASYMMETRIC INFORMATION, HOME MARKET, BOND FINANCING, DUMMY VARIABLE, INTERNATIONAL BANK, CASH FLOWS, BOND ISSUERS, MATURITY, PRIVATE BOND, FOREIGN MARKETS, LONG-TERM DEBT, LIQUID MARKETS, DEBT CAPACITY, BOND ISSUANCES, AMOUNT OF CAPITAL, MARKET LIQUIDITY, CAPITAL ALLOCATION, BOND ISSUER, INITIAL PUBLIC OFFERINGS, PUBLIC DEBT MARKET, MARKET DEVELOPMENT, FINANCIAL STUDIES, DOMESTIC CAPITAL, CONTRACTS, BOND MARKET CAPITALIZATION, BOND ISSUANCE, CORPORATE BOND MARKET, EMERGING MARKET, FINANCIAL INSTITUTIONS, MARKETS, DEBT, CAPITAL MARKET, RETURN, PRIMARY MARKETS, PUBLIC FINANCE, INTERNATIONAL ECONOMICS, BOND ISSUING, BANK CREDIT, EQUITY MARKET CAPITALIZATION, GROSS DOMESTIC PRODUCT, EQUITIES, FINANCIAL SYSTEM, RETURN ON ASSETS, FINANCE, BANK POLICY, TAXES, BROKERS, INVESTMENT DECISIONS, INFORMATION ASYMMETRY, EQUITY ISSUES, IPO, INVESTMENT BANKS, EQUITY, TRANSACTION, SECURITIES MARKETS, INVESTORS, ISSUERS OF SECURITIES, VALUATIONS, BOND MARKETS, OWNERSHIP STRUCTURE, INTERNATIONAL TRADE, DOMESTIC MARKETS, PUBLIC OFFERINGS, FINANCIAL STRUCTURES, MARKET CAPITALIZATION, FUTURE, COMMERCIAL PAPER, RETURNS, CAPITAL RAISING, EXCHANGES, CAPITAL MARKET ACTIVITY, BOND MARKET, CAPITALIZATION, RISK EXPOSURE, DEBT SECURITIES, ISSUANCE, FIRM PERFORMANCE, OFFSHORE FINANCIAL CENTERS, CORPORATE INVESTMENT, BALANCE SHEET, MARKET, STOCK MARKET DEVELOPMENT, SECURITIES, PUBLIC DEBT, INSURANCE, DEBT-EQUITY, ECONOMIC DEVELOPMENT, DEBT MARKET, FINANCIAL LIBERALIZATION, CAPITAL MARKET DEVELOPMENT, CORPORATE BONDS, EMERGING MARKET EQUITY, SECURITY, FINANCIAL DEVELOPMENT, ACCOUNTING STANDARDS, EQUITY MARKETS, FINANCIAL MARKET, INVESTMENT, BOND, DOMESTIC EQUITY, CORPORATE BOND, MARKET EQUITY, BALANCE SHEETS, FINANCIAL MARKETS, CORPORATE BOND MARKETS, EQUITY ISSUANCES, FINANCIAL STRUCTURE, INVESTMENTS, LENDING, CONSUMER PRICE INDEX, STOCK RETURNS, MATURITIES, DOMESTIC CAPITAL MARKET, PROFITS, CAPITAL MARKET FINANCING, LABOR MARKETS, FINANCIAL SYSTEMS, LIABILITIES, FOREIGN EQUITY, STOCK EXCHANGES, INTERNATIONAL MARKETS, CASH FLOW, FINANCIAL SECTOR DEVELOPMENT, STOCK MARKETS, CORPORATE GOVERNANCE, DOMESTIC BOND MARKETS,
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24744318/capital-market-financing-firm-growth-firm-size-distribution https://hdl.handle.net/10986/22234
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