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Patterns of international capital raisings

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  • Gozzi, Juan Carlos
  • Levine, Ross
  • Schmukler, Sergio L.

Abstract

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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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4687.

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Date of creation: 01 Aug 2008
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Handle: RePEc:wbk:wbrwps:4687

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Keywords: Debt Markets; Emerging Markets; Economic Theory&Research; Access to Finance; Microfinance;

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References

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Citations

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Cited by:
  1. Eduardo Yeyati & Sergio Schmukler & Neeltje Van Horen, 2009. "Crises, Capital Controls, and Financial Integration," Working Papers id:2099, eSocialSciences.
  2. Didier, Tatiana & Schmukler, Sergio L., 2013. "The financing and growth of firms in China and India : evidence from capital markets," Policy Research Working Paper Series 6401, The World Bank.
  3. Levy Yeyati, Eduardo & Schmukler, Sergio L. & Van Horen, Neeltje, 2009. "International financial integration through the law of one price: The role of liquidity and capital controls," Journal of Financial Intermediation, Elsevier, Elsevier, vol. 18(3), pages 432-463, July.
  4. Gargi Sanati, 2010. "Integration of India’s Financial Markets on the Domestic and International Fronts: An Emperical Analysis of the Post-Liberalisation Period. June 2010," Working Papers id:3097, eSocialSciences.
  5. Patricio Valenzuela, 2013. "Rollover risk and corporate bond spreads," Documentos de Trabajo, Centro de Economía Aplicada, Universidad de Chile 300, Centro de Economía Aplicada, Universidad de Chile.
  6. Juan Carlos Gozzi & Ross Levine & Maria Soledad Martinez Peria & Sergio L. Schmukler, 2012. "How Firms Use Domestic and International Corporate Bond Markets," NBER Working Papers 17763, National Bureau of Economic Research, Inc.
  7. Ayyagari, Meghana & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2012. "Financing of firms in developing countries : lessons from research," Policy Research Working Paper Series 6036, The World Bank.
  8. Galina Hale, 2011. "Evidence on financial globalization and crisis: capital raisings," Working Paper Series, Federal Reserve Bank of San Francisco 2011-04, Federal Reserve Bank of San Francisco.
  9. Chhaochharia, Vidhi & Laeven, Luc, 2008. "Sovereign Wealth Funds: Their Investment Strategies and Performance," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6959, C.E.P.R. Discussion Papers.
  10. Tatiana Didier & Ross Levine & Sergio L. Schmukler, 2014. "Capital Market Financing, Firm Growth, Firm Size Distribution," NBER Working Papers 20336, National Bureau of Economic Research, Inc.
  11. Hallak, Issam, 2013. "Private sector share of external debt and financial stability: Evidence from bank loans," Journal of International Money and Finance, Elsevier, Elsevier, vol. 32(C), pages 17-41.
  12. Franklin ALLEN & Elena CARLETTI & Jun 'QJ' QIAN & Patricio VALENZUELA, 2012. "Financial Intermediation, Markets, and Alternative Financial Sectors," Economics Working Papers, European University Institute ECO2012/11, European University Institute.
  13. Cecilia Caglio & Kathleen Weiss Hanley & Jennifer Marietta-Westberg, 2013. "Going public abroad," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2013-68, Board of Governors of the Federal Reserve System (U.S.).

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