Publication:
Capital Market Financing and Firm Growth

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dc.contributor.authorLevine, Ross
dc.contributor.authorDidier, Tatiana
dc.contributor.authorLlovet Montanes, Ruth
dc.contributor.authorSchmukler, Sergio L.
dc.date.accessioned2020-07-30T15:34:25Z
dc.date.available2020-07-30T15:34:25Z
dc.date.issued2020-07
dc.description.abstractThis paper studies whether there is a connection between finance and growth at the firm level. It employs a new dataset of 150,165 equity and bond issuances around the world, matched with income and balance sheet data for 62,653 listed firms in 65 countries over 1990-2016. Three main patterns emerge from the analyses. First, firms that choose to issue in capital markets use the funds raised to grow by enhancing their productive capabilities, increasing their tangible and intangible capital and the number of employees. Growth accelerates as firms raise funds. Second, the faster growth is more pronounced among firms that are more likely to face tighter financing constraints, namely, small, young, and high-R&D firms. Third, capital market issuances are associated with faster growth among firms located in countries with more developed capital markets relative to banks. Capital markets are also comparatively effective at allowing financially constrained firms to raise capital.en
dc.identifierhttp://documents.worldbank.org/curated/en/879651595862883790/Capital-Market-Financing-and-Firm-Growth
dc.identifier.doi10.1596/1813-9450-9337
dc.identifier.urihttps://hdl.handle.net/10986/34255
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9337
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectBOND MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL RAISING
dc.subjectEQUITY MARKET
dc.subjectFINANCIAL STRUCTURE
dc.subjectFIRM DYNAMICS
dc.subjectFIRM FINANCING
dc.subjectFIRM SIZE
dc.titleCapital Market Financing and Firm Growthen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCapital Market Financing and Firm Growth
okr.date.disclosure2020-07-27
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/879651595862883790/Capital-Market-Financing-and-Firm-Growth
okr.guid879651595862883790
okr.identifier.doi10.1596/1813-9450-9337
okr.identifier.externaldocumentum090224b087c0a8fd_2_0
okr.identifier.internaldocumentum32277571
okr.identifier.reportWPS9337
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/879651595862883790/pdf/Capital-Market-Financing-and-Firm-Growth.pdfen
okr.statistics.combined3939
okr.statistics.dr879651595862883790
okr.statistics.drstats2761
okr.topicFinance and Financial Sector Development::Capital Markets and Capital Flows
okr.topicInternational Economics and Trade::Capital Flows
okr.topicPrivate Sector Development::Private Sector Economics
okr.unitEquitable Growth, Finance and Institutions Vice Presidency; Development Research Group, Development Economics; and Finance, Competitiveness and Innovation Global Practice
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