Globalization and Firms' Financing Choices: Evidence from Emerging Economies

Sergio Schmukler and Esteban Vesperoni

No 388, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: 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 international capital markets. We find that debt-equity ratios do not increase after financial liberalization. Debt maturity shortens for the average firm when countries undertake 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.

Keywords: financing choices; financial structure; financial integration; financial globalization; international financial markets (search for similar items in EconPapers)
JEL-codes: F1 G1 G3 (search for similar items in EconPapers)
Pages: pages
Date: 2001-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp388.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp388.pdf [302 Found]--> https://wdi.umich.edu/files/Publications/WorkingPapers/wp388.pdf)

Related works:
Working Paper: Globalization and Firms' Financing Choices: Evidence From Emerging Economies (2001)
Working Paper: Globalization and firms'financing choices - evidence from emerging economies (2000)
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:wdi:papers:2001-388

Access Statistics for this paper

More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().