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Who issues debt securities in emerging countries?

Author

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  • Mamoru, Nagano

Abstract

This paper focuses on the differences of capital market accessibility and investigates the determinants of firm debt securities issuance in emerging countries. The following results are derived from the empirical analysis. First, country panel analyses showed that the debt securities market development and domestic equity market development were positively related. Second, firm panel data analyses of ASEAN countries suggest that debt securities issuers and frequent equity issuers overlap. Third, analyses of daily stock price data of ASEAN firms reveal that debt securities are not issued for infrequent equity issuers, regardless of the stock price, whereas frequent equity issuers choose debt securities issuance as a funding tool when the stock price is low. Fourth, as compared to accessible frequent equity issuers, market-inaccessible firms are less sensitive to the financial cost of debt securities issuance.

Suggested Citation

  • Mamoru, Nagano, 2011. "Who issues debt securities in emerging countries?," MPRA Paper 33623, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33623
    as

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    File URL: https://mpra.ub.uni-muenchen.de/33623/1/MPRA_paper_33623.pdf
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    References listed on IDEAS

    as
    1. Wurgler, Jeffrey, 2000. "Financial markets and the allocation of capital," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 187-214.
    2. E. P. Davis, 2001. "Multiple Avenues of Intermediation, Corporate Finance and Financial Stability," IMF Working Papers 01/115, International Monetary Fund.
    3. Fama, Eugene F. & French, Kenneth R., 2005. "Financing decisions: who issues stock?," Journal of Financial Economics, Elsevier, vol. 76(3), pages 549-582, June.
    4. Omer Brav, 2009. "Access to Capital, Capital Structure, and the Funding of the Firm," Journal of Finance, American Finance Association, vol. 64(1), pages 263-308, February.
    5. Vidhan K. Goyal & Alessandro Nova & Laura Zanetti, 2011. "Capital Market Access and Financing of Private Firms," International Review of Finance, International Review of Finance Ltd., vol. 11(2), pages 155-179, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Debt Securities Issuance; Asian Bond Market; Corporate Finance;

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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