A Preference for Corporate Borrowing in Alternative Markets over Borrowing from Banks under the Impact of Monetary Policies: a Lithuanian Case

Gasparėnienė, Ligita; Remeikienė, Rita; Sadeckas, Alius; Chadyšas, Viktoras

doi:10.1080/1331677x.2019.1638288

Cited by 3 publications

(3 citation statements)

References 29 publications

(82 reference statements)

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“…The academic research on the country-level determinants presents the main division into government and corporate bonds, and the studies on the firm-level determinants produce the split into domestic and international corporate bond issuance. The study of Gaspareniene et al (2019) further divided the determinants into general economic determinants, bank sector determinants, money market determinants, and specific characteristics of a company.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Lithuanian corporate bond market is either studied in a bigger sample of countries for government debt issuance or in the context of alternative to bank-base borrowing. Gaspareniene et al (2019) identified the link between corporate borrowing in the financial markets and bank requirements for borrowers based on the strict legal regulation of the banking sector. Levisauskaite et al (2014) included both Latvia and Lithuania in their analysis of the link between the stock market and sovereign bond markets in the European Union (EU) countries, while one of the conclusions indicated that the Lithuanian market distinguished from other European countries as assumed by the authors, potentially caused by lack of data, different indi-ces used or the country being among new members of the European Union.…”

Section: Literature Reviewmentioning

confidence: 99%

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Going Global or Staying Local: Determinants of Domestic and International Corporate Bond Issues in the Baltics

Tocelovska,

Vainovskis,

Lenerts

2023

EIS

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In the period 2017-2022, there has been a notable growth in international bond placements by Baltic companies, which is distinct from corporate bond issuance in the European Economic Area. While the Baltic governments have demonstrated an increased focus on the corporate bond market development – the pan-Baltic Capital Markets Union launched in 2017 and covered bond law as adopted in Latvia in 2021, those activities are not directly linked to the ongoing shift to international corporate borrowing. In the academic literature, the determinants affecting corporate bond issuance are getting certain attention while studying separately the country-level determinants and the firm-level determinants, which are further split into domestic and international corporate bond issuance. For the Baltic countries, rare academic research has focused on the corporate bond market development of an individual Baltic country. This paper aims to discover the determinants for domestic and international corporate bond issuance of Baltic companies. While providing theoretical insight into corporate bond issuance rationale for both domestic and international placements, the paper focuses on factors that have contributed to firms choosing to issue bonds internationally. The methods applied in this study are scientific publication analysis, document analysis, expert survey, in-depth interviews, and statistical data analysis. For the statistical analysis, macroeconomic data was acquired from Cbonds, The World Bank, and International Monetary Fund databases in combination with company-specific data gathered from Nasdaq CSD, Orbis, Lursoft, Storybook, and Rekvizitai. The authors have employed a panel regression model for domestic and international bond issuance, and probit regression for all issued bonds in the Baltics from 2003-2022 to estimate the probability of pursuing bond financing internationally. The findings of this paper indicate that in the Baltics the main firm-level determinants for domestic corporate bond issuance are the company’s financial performance, its geographic exposure, documentation and listing costs, and access to alternative funding sources; on the country-level, the determinants are the share of sovereign international bonds of GDP, corruption perception, and exports as a share of GDP. For issuing international corporate bonds, the main determinants on the firm-level are bond placement size, company size, equity ratio, a satisfactory credit rating, and appropriate yields in the context of higher competition for international investor attention; on the country-level, GDP per capita, country’s export share, interest rate spread, regulatory quality, and political stability play an important role.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Going Global or Staying Local: Determinants of Domestic and International Corporate Bond Issues in the Baltics

Tocelovska,

Vainovskis,

Lenerts

2023

EIS

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“…Companies in developed countries have mixed capital structures, while companies in less developed countries are largely dependent on bank loans and credits. Interest rates and bond yields exercise important effect on company's borrowing decision (Gaspareniene et al, 2019;Redo, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of companies’ bankruptcy in Poland as compared with the cost of protection under trade credit insurance

Dankiewicz

2020

Journal of International Studies

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The phenomenon of company bankruptcy is in fact an inherent element of market economy functioning which is due, among other things, to the high level of competition on the market. Considering the fact that the vast majority of companies conduct their activities with the use of trade credit, there is a significant risk of financial problems when creditors fail to pay their receivables in a timely manner. The purpose of the paper is to analyze the phenomenon of bankruptcy in Poland, and to identify the relationship between the scale of bankruptcy and the cost of securing receivables with the use of trade credit insurance. The research that enabled to achieve the set purpose was conducted on a sample of 8223 entities operating in Poland in various sectors of economy. The study was carried out in two stages by means of basic descriptive statistics, and the results were analyzed by means of the Kruskal Wallis ANOVA test and Spearman's rank correlation. The research has shown that there was a high level of dependence between the change in the amount of gross written premium on trade credit insurance and the number of bankruptcies in the construction sector.

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Enterprise risk management and cost of debt: the moderating role of crisis

Rahmawati,

Siregar,

R. Shauki

et al. 2024

Cogent Business & Management

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A Preference for Corporate Borrowing in Alternative Markets over Borrowing from Banks under the Impact of Monetary Policies: a Lithuanian Case

Cited by 3 publications

References 29 publications

Going Global or Staying Local: Determinants of Domestic and International Corporate Bond Issues in the Baltics

Going Global or Staying Local: Determinants of Domestic and International Corporate Bond Issues in the Baltics

Analysis of companies’ bankruptcy in Poland as compared with the cost of protection under trade credit insurance

Enterprise risk management and cost of debt: the moderating role of crisis

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