Globalization and firms ' financing choices - evidence from emerging economies

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Globalization and firms' financing choices - evidence from emerging economies, Volume 1

Author:	Schmukler, Sergio; Versperoni, Esteban;	Collection Title:	Policy, Research working paper ; no. WPS 2323
Country:	Latin America; Caribbean; Asia;	Date Stored:	2000/05/25
Document Date:	2000/04/30	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Finance
Region:	East Asia and Pacific; South Asia; Latin America & Caribbean	Report Number:	WPS2323
Sub Sectors:	Other Finance	SubTopics:	Environmental Economics & Policies; Payment Systems & Infrastructure; Economic Theory & Research; Housing Finance; Banks & Banking Reform; Financial Intermediation
Volume No:	1

Summary: The authors investigate whether integration with global markets affects the financing choices of firms from East Asia and Latin America. Using firm-level data for the 1980s and 1990s, they study how leverage ratios, the structure of debt maturity, and sources of financing change when economies are liberalized and when firms gain access to international equity and bond markets. The evidence shows that integration with world financial markets has uneven effects. On the one hand, debt maturity for the average firm shortens when countries undertake financial liberalization. On the other hand, domestic firms that actually participate in international markets, get better financing opportunities, and extend their debt maturity. Moreover, firms in economies with deeper domestic financial systems are affected less by financial liberalization. Finally, they show that leverage ratios increase during times of crisis. In an appendix, they analyze the previously unstudied case of Argentina, which experienced sharp financial liberalization, and was hit hard by all recent global crises.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 74 pages	Official version*	5.18 (approx.)
	Text	Text version**


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	PDF 68 pages	WPS2323	0.19

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