The Euro and Corporate Financing
60 Pages Posted: 9 Feb 2011
There are 4 versions of this paper
The Euro and Corporate Financing before the Crisis
The Euro and Corporate Financing
The Euro and Corporate Financing before the Crisis
Date Written: February 2011
Abstract
In this paper we study how the introduction of the euro has affected corporate financing in Europe. We use firm level data from eleven euro-countries as well as from a control group of five other European countries spanning the years 1991-2006. We show that firms from euro-countries that previously had weak currencies have increased both their equity and debt financing compared to the control group. We also show that results are stronger for firms that hail from less financially developed euro-countries, and that large firms from industries that are dependent on external financing have increased their debt financing more. These results support the hypothesis that improved access to capital markets in the euro-area has enabled increased external financing, especially debt financing.
Keywords: euro, external financing, financial dependence, financial development, supply of capital
JEL Classification: F33, F36, G32
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Geography of Asset Trade and the Euro: Insiders and Outsiders
-
By Sebnem Kalemli-ozcan, Elias Papaioannou, ...
-
By Sebnem Kalemli-ozcan, Elias Papaioannou, ...
-
By Sebnem Kalemli-ozcan, Elias Papaioannou, ...
-
Foreign Ownership and Firm Performance: Emerging-Market Acquisitions in the United States
By Anusha Chari, Wenjie Chen, ...
-
Who Drove the Boom in Euro-Denominated Bond Issues?
By Galina Hale and Mark M. Spiegel
-
The Evolution of Ownership Disclosure Rules Across Countries
By Michael C. Schouten and Mathias Siems
-
Deep Financial Integration and Volatility
By Sebnem Kalemli-ozcan, Bent E. Sørensen, ...
-
Deep Financial Integration and Volatility
By Sebnem Kalemli-ozcan, Bent E. Sørensen, ...