How firms use corporate bond markets under financial globalization

Gozzi, Juan Carlos; Levine, Ross; Pería, María Soledad Martínez; Schmukler, Sergio L.

doi:10.1016/j.jbankfin.2015.03.017

Cited by 65 publications

(50 citation statements)

References 81 publications

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“…18 The larger size of international issuers vis-a-vis domestic issuers could be explained, at least in part, by the higher costs associated with the use of international markets. For instance, to meet the liquidity and size demanded by international buyers, the minimum deal size is typically much larger than in domestic markets (Gozzi, Levine, Martinez Per ıa, & Schmukler, 2015;Zervos, 2004). Debt issuances abroad could also be associated with higher legal costs to meet international regulations and international rating fees.…”

Section: Notesmentioning

confidence: 99%

Corporate debt maturity in developing countries: Sources of long and short‐termism

Lorente¹,

Brandao²,

Schmukler

2018

World Economy

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This paper documents to what extent firms from developing countries borrow short versus long term, using data on corporate bond and syndicated loan markets. Contrary to claims in the literature based on firm balance sheets, firms from developing countries borrow through bonds and syndicated loans at maturities similar to those obtained by developed country firms. There are relevant differences across the debt markets composing this aggregate pattern. Firms from developing countries borrow shorter term in domestic bond markets. But the differences in international issuances (accounting for most of the proceeds) are significantly smaller. Moreover, developing country firms borrow longer term in syndicated loan markets. However, only large firms from developing countries (similar in size to those from developed ones) issue bonds and syndicated loans. The short‐termism in developing countries is partly explained by a lower proportion of firms using these markets, with more firms relying on other shorter‐term instruments.

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Section: Notesmentioning

confidence: 99%

Corporate debt maturity in developing countries: Sources of long and short‐termism

Lorente¹,

Brandao²,

Schmukler

2018

World Economy

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“…It draws on the empirical literature on the determinants of corporate bond issuance at the firm and country level. Earlier studies predominantly for developed countries have shown that both firm-specific characteristics and the macroeconomic environment matter for firms' decisions to issue bonds (Houston andJames, 1996, Johnson, 1997;Dennis and Mihov, 2003;Hale and Santos, 2008;Mizen and Tsoukas, 2014, Didier et al, 2014, Gozzi et al, 2015. Important firm characteristics include firm size, growth and financial conditions while various other factors such as market depth, information asymmetries and market timing also play a key role.…”

Section: Related Literaturementioning

confidence: 99%

What slice of the pie? The corporate bond market boom in emerging economies

Ayala

Nedeljković

Saborowski

2017

Journal of Financial Stability

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper studies the determinants of shifts in debt composition among emerging market nonfinancial corporates. We show that the determinants of bond market access in EMs vary with global cyclical conditions and across local and foreign currency markets. We find that the role for institutions and macro fundamentals in creating an enabling environment for markets increased during the post-crisis period for local currency markets. Foreign bank linkages additionally explain why local currency bond markets increasingly substituted for banks in channeling liquidity to EMs. In the case of foreign currency markets, in turn, global cyclical factors accounted for most of the variation. Furthermore, a country's relative sensitivity to global factors appears to vary with the size of its foreign currency bond market rather than local fundamentals. Our results highlight the risk of capital flow reversal in those EMs that benefited from the upturn in the global financial cycle mostly due to the relative size of their bond markets rather than strong fundamentals. Terms of use: Documents inJEL-Codes: F300, G150, G200, G300.

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“…However, research on international debt financing is important since 35% of the total amount raised through debt issues in developed economies is raised abroad, while in emerging economies, this figure is 47% (Gozzi et al, 2010). Moreover, international debt issues tend to be denominated in foreign currencies, particularly in U.S. dollars (Gozzi et al, 2015). Finally, as Valenzuela (2016) demonstrates, the data on corporate bond spreads used in this paper are representative of the universe of bonds denominated in U.S. dollars.…”

Section: Report On Exchange Arrangements and Exchange Restrictions (Amentioning

confidence: 99%

Capital Controls and the Cost of Debt

2019

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Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads. A number of heterogeneities suggest that the effect of capital controls on inflows is particularly strong for more financially constrained firms, establishing a novel channel through which capital controls affect economic outcomes. By contrast, we do not find a robust significant effect of restrictions on outflows. JEL Classification Numbers: F3, F4, G1, G3

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How firms use corporate bond markets under financial globalization

Cited by 65 publications

References 81 publications

Corporate debt maturity in developing countries: Sources of long and short‐termism

Corporate debt maturity in developing countries: Sources of long and short‐termism

What slice of the pie? The corporate bond market boom in emerging economies

Capital Controls and the Cost of Debt

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