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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Financial integration and emerging markets capital structure
AU - Lucey, Brian
AU - Zhang, Qiyu
PY - 2011/5
Y1 - 2011/5
N2 - This paper investigates the impact of country-level financial integration on corporate financing choices in emerging economies. Examining 4477 public firms from 24 countries, we find that corporate leverage is positively related to credit market integration and negatively related to equity market integration. As integration proceeds to higher levels, high-growth firms seem to obtain more debt than low-growth firms; large firms seem to obtain more debt – especially long-term debt – and issue more equity than small firms. Also, there is evidence that firms are able to borrow more funds in countries with more efficient legal systems during integration process.
AB - This paper investigates the impact of country-level financial integration on corporate financing choices in emerging economies. Examining 4477 public firms from 24 countries, we find that corporate leverage is positively related to credit market integration and negatively related to equity market integration. As integration proceeds to higher levels, high-growth firms seem to obtain more debt than low-growth firms; large firms seem to obtain more debt – especially long-term debt – and issue more equity than small firms. Also, there is evidence that firms are able to borrow more funds in countries with more efficient legal systems during integration process.
KW - Financial integration
KW - Emerging market firms
KW - Corporate leverage
KW - Debt maturity
KW - Emerging markets
KW - Capital structure
KW - Integration
U2 - 10.1016/j.jbankfin.2010.10.017
DO - 10.1016/j.jbankfin.2010.10.017
M3 - Journal article
VL - 35
SP - 1228
EP - 1238
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
SN - 0378-4266
IS - 5
ER -