Autores: J. Riutort
I study empirically the implications of international securities issuance on firm’s performance and their capacity to react to financial shocks. In particular, I study firms that access international markets by both cross-listing of stock and debt issues, how their characteristics compare to firms that raise all its capital locally, and to what extent capital raising in international markets is related to the capacity of the firm to react to financial shocks.
The main findings of this paper are: first, even firms from low and middle income countries do a significant amount of international capital raising. Second, firms in high income countries that raise capital internationally tend to be fast growing companies, while firms from low income countries that raise capital internationally tend to be slow growing companies. Finally, I find that raising capital internationally is correlated with the capacity to react to financial shocks; however this relationship depends on the overall degree of development of the country.
Keywords: International Finance, Financial Integration, Securities Issuance