Globalization and firms' financing choices
Subtitle: evidence from emerging economies
By: Sergio Schmukler and Esteban Vesperoni.
Contributors: Vesperoni, Esteban.; International Monetary Fund. Western Hemisphere Dept.
Series: IMF working paper -- WP/01/95
Publisher: International Monetary Fund
Published: 2001
Place of publication: Washington, D.C
Language: eng
Number of pages: 25
Subjects: Business enterprises -- Developing countries -- Finance.; Corporations -- Developing countries -- Finance.; Corporate debt -- Developing countries.; Debt-to-equity ratio -- Developing countries.
Description: This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access captial markets.  We find that debt-equity rations do not increase after financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises.
Notes: "July 2001."

Includes bibliographical references (p. 17-19).