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Financial integration and emerging markets capital structure

Lucey, Brian and Zhang, Qiyu (2011) Financial integration and emerging markets capital structure. Journal of Banking and Finance, 35 (5). pp. 1228-1238. ISSN 0378-4266

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    Abstract

    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.

    Item Type: Article
    Journal or Publication Title: Journal of Banking and Finance
    Uncontrolled Keywords: Financial integration ; Emerging market firms ; Corporate leverage ; Debt maturity ; Emerging markets ; Capital structure ; Integration
    Subjects: H Social Sciences > HG Finance
    Departments: Lancaster University Management School > Accounting & Finance
    ID Code: 56200
    Deposited By: ep_importer_pure
    Deposited On: 26 Jul 2012 13:06
    Refereed?: Yes
    Published?: Published
    Last Modified: 09 Jan 2013 14:56
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/56200

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