Capital market financing, firm growth, and firm size distribution

Tatiana Didier (), Ross Levine () and Sergio Schmukler

No 4, ESRB Working Paper Series from European Systemic Risk Board

Abstract: 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 (FSD)? To evaluate these questions, we construct a new dataset 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 terms of assets, sales, and employment, i.e., firms do not simply use securities markets to adjust their financial accounts. (3) The FSD of issuers evolves differently from that of non-issuers, tightening among issuers and widening among non-issuers. JEL Classification: F65, G00, G10, G31, G32, L25

Keywords: access to finance; bond markets; capital market development; capital raisings; firm dynamics; firm financing; stock market (search for similar items in EconPapers)
Date: 2016-03
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.esrb.europa.eu//pub/pdf/wp/esrbwp4.en.pdf (application/pdf)

Related works:
Working Paper: Capital Market Financing, Firm Growth, and Firm Size Distribution (2015)
Working Paper: Capital market financing, firm growth, and firm size distribution (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:srk:srkwps:20164

Access Statistics for this paper

More papers in ESRB Working Paper Series from European Systemic Risk Board 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().