Patterns of International Capital Raisings
58 Pages Posted: 19 May 2009 Last revised: 19 Nov 2022
There are 2 versions of this paper
Patterns of International Capital Raisings
Date Written: May 2009
Abstract
This paper documents several new patterns associated with firms issuing stocks and bonds in foreign markets that motivate the need for and help guide the direction of future research. Three major patterns stand out. (1) A large and growing fraction of capital raisings, especially debt issuances, occurs in international markets, but a very small number of firms accounts for the bulk of international capital raisings, highlighting the cross-firm heterogeneity in financial globalization. (2) Changes in firm performance following equity and debt issuances in international markets are qualitatively similar to those following domestic issuances, suggesting that capital raisings abroad are not intrinsically different from those in domestic markets. (3) Firms continue to issue securities both abroad and at home after accessing international markets, suggesting that international and domestic markets are complements, not substitutes. Existing theories do not fully account for these patterns.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Financial Globalization: A Reappraisal
By M. Ayhan Kose, Eswar S. Prasad, ...
-
Financial Globalization: A Reappraisal
By M. Ayhan Kose, Eswar S. Prasad, ...
-
Financial Globalization: A Reappraisal
By M. Ayhan Kose, Eswar S. Prasad, ...
-
Economic Effects and Structural Determinants of Capital Controls
-
What Matters for Financial Development? Capital Controls, Institutions, and Interactions
By Menzie David Chinn and Hiro Ito
-
What Matters for Financial Development? Capital Controls, Institutions, and Interactions
By Menzie David Chinn and Hiro Ito
-
Short-Run Pain, Long-Run Gain: The Effects of Financial Liberalization
-
Short-Run Pain, Long-Run Gain: The Effects of Financial Liberalization
-
Short-Run Pain, Long-Run Gain: The Effects of Financial Liberalization