Globalization and Firms' Financing Choices: Evidence from Emerging Economies
Author | : Sergio L. Schmukler |
Publisher | : International Monetary Fund |
Total Pages | : 32 |
Release | : 2001-08 |
ISBN-10 | : UCSD:31822029857885 |
ISBN-13 | : |
Rating | : 4/5 (85 Downloads) |
Download or read book Globalization and Firms' Financing Choices: Evidence from Emerging Economies written by Sergio L. Schmukler and published by International Monetary Fund. This book was released on 2001-08 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access capital markets. We find that debt-equity rations do not increase after financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises