The rise of domestic capital markets for corporate financing: Lessons from East Asia

Abraham, Facundo; Cortina, Juan J.; Schmukler, Sergio L.

doi:10.1016/j.jbankfin.2020.105987

Cited by 17 publications

(8 citation statements)

References 69 publications

(51 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Other studies explained that equity financing has a positive impact on economic growth as it is backed by regulations limiting speculative financial transactions, thereby reducing the systematic risk within the financial industry [21]. In addition, Abraham, et al [22] explained that the development of the domestic financial market encourages access to capital for companies by issuing shares or bonds and a form of diversification of corporate capital sources. In terms of liquidity risk, equity-based financing positively correlates with the required stable funding and increases the company's bargaining power [23].…”

Section: Literature Reviewmentioning

confidence: 99%

Achieving Sustainable Economic Growth: Analysis of Islamic Debt and the Islamic Equity Market

et al. 2021

View full text Add to dashboard Cite

The financial sector is divided into two broad categories: equity and banking markets. The healthy functioning of these sectors plays an imperative role in any economy. This study aimed to examine the short- and long-term relationship between the Islamic financial sector (Islamic debt and Islamic equity market), and sustainable economic growth of the two economies with the largest Muslim populations. Quarterly data were collected from 2010 to 2019 for Indonesia and Pakistan. The study used autoregressive distributive lag (ARDL) and the error correction method (ECM). The results revealed that in the long run, the Islamic banking sector imparts a significant and positive effect on achieving sustainable economic growth in both countries. However, in the short run, the Islamic stock market was found to have a positive relationship with Pakistan, while the Islamic banking sector had a positive and significant relationship with economic growth in Indonesia.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Achieving Sustainable Economic Growth: Analysis of Islamic Debt and the Islamic Equity Market

et al. 2021

View full text Add to dashboard Cite

show abstract

“…Over time, the onshore markets grew rapidly even as they continued to vary across countries in their levels of development. Abraham, Cortina, and Schmukler (2021) nd supporting evidence of the development of the domestic markets in Asia. They show that while international bond markets played an important role to the corporate nancing boom in East Asia during the 1990s, domestic markets proved to be even more important since the global nancial crisis.…”

Section: Introductionmentioning

confidence: 83%

“…We observe East Asian corporate bonds as those issued by a rm located in East Asia either in an East Asian market or an international market. We dene rms' nationality using the residence-based approach followed by the Bank of International Settlements (BIS) statistical analysis and other relevant literature (e.g Abraham et al, 2021). To classify debt issues as onshore or oshore, we use the main market in which the bonds are issued and compare it to the issuing rm's nationality (Gozzi et al, 2010(Gozzi et al, , 2012.…”

Section: Data Sources and Denitionsmentioning

confidence: 99%

Original sin in corporate finance: New evidence from Asian bond issuers in onshore and offshore markets

Mizen

Packer²,

Remolona

et al. 2021

Journal of International Money and Finance

View full text Add to dashboard Cite

In this paper, we focus on the surprising phenomenon in which rms face diculty issuing in domestic currency even in the home market, especially in emerging markets.Could this be due to original sin which has been familiar to sovereign bond issuance?In its new incarnation, original sin refers to the diculty rms in many emerging markets have in borrowing domestically long-term, even in the local currency. We infer the nature of original sin from 5,901 nancing decisions by rms in seven Asian emerging markets over a period of 20 years. Our sample period covers an episode when bond issuers had a choice between a less developed but growing onshore market, which varied across countries in the level of development, and a deep and liquid oshore market. We nd that even in countries with onshore markets, it is often easier for unseasoned rms to issue oshore (in foreign currency) than to issue onshore, but changes in market development reverses this eect. In addition, once such a rm becomes a seasoned issuer, it is absolved from domestic original sin and is then able to act opportunistically and go to the market favored by interest dierentials.

show abstract

“…Modern trends in corporate finance management are associated with the globalization of the financial sphere and, as a consequence, the emergence of additional risks due to the increasing interdependence between the various structural elements of the financial market [6][7][8][9]. Therefore, there is a need to apply innovative methods of corporate finance management in order to promptly respond to changes in the external environment, while maintaining the focus of the company's development strategy [10][11][12][13].…”

Section: Introductionmentioning

confidence: 99%

Efficiency of corporate finance: formation of accounting and management tools

et al. 2021

View full text Add to dashboard Cite

The commercial sector of the economy is the guarantor of the stability of the state functioning, since the economic subjects employed in it are able to combine personal (entrepreneurial) interests with the interests of the population, thanks to their economic potential formed at the expense of business processes aimed at profit (the main source of financing measures to meet human needs for the existing benefits). The purpose of the study - the formation of accounting and management tools that allow corporations to conduct a comprehensive analysis of the effectiveness of financial relationships, taking into account all the conditions of activity inherent in big business. In the course of the study the calculative-constructive, deductive and inductive methods were used, which allow to interconnect dialectically resultant and factor efficiency indicators, in our case, in the sphere of corporate finance, through multiple-additive correlation of efficiency and cost of financial relations in big business. The article presents the system of indicators developed by the authors, offered to corporations for assessment by the accounting and management apparatus of efficiency of their financial relations, which play the key role in business due to the greatest liquidity of monetary resources. The toolkit of such a system is built on the study of controlled and uncontrolled conditions of corporations' functioning. The use by corporations of the recommended author's approach will provide them with the optimization of the result and costs (profit and expenses) and, accordingly, the effectiveness and cost effectiveness (direct and indirect profitability or profitability) of activities, by which their financial efficiency is determined.

show abstract

The rise of domestic capital markets for corporate financing: Lessons from East Asia

Cited by 17 publications

References 69 publications

Achieving Sustainable Economic Growth: Analysis of Islamic Debt and the Islamic Equity Market

Achieving Sustainable Economic Growth: Analysis of Islamic Debt and the Islamic Equity Market

Original sin in corporate finance: New evidence from Asian bond issuers in onshore and offshore markets

Efficiency of corporate finance: formation of accounting and management tools

Contact Info

Product

Resources

About