Working Paper

Capital Inflows, Equity Issuance Activity, and Corporate Investment

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Calomiris, Charles W.
dc.contributor.author
Larrain, Mauricio
dc.contributor.author
Schmukler, Sergio L.
dc.date.accessioned
2018-04-20T13:37:20Z
dc.date.available
2018-04-20T13:37:20Z
dc.date.issued
2018-04
dc.date.lastModified
2021-06-14T10:09:32Z
dc.description.abstract
This paper uses issuance-level data to study how equity capital inflows that enter emerging market economies affect equity issuance and corporate investment. It shows that foreign inflows are strongly correlated with country-level issuance. The relation reflects the behavior of large issuers issuing in domestic equity markets and that of firms issuing in international markets. Those larger, more liquid, and highly valued firms are the ones more likely to raise equity when their country receives capital inflows. To identify supply-side shocks, capital inflows into each country are instrumented with exogenous changes in other countries' attractiveness to foreign investors. Shifts in the supply of foreign capital are important drivers of increased equity inflows. Instrumented inflows lead a subset of firms (large domestic issuers and foreign issuers) to raise new equity, which they use to fund investment. Corporate investment increases between one-tenth and four-tenths the amount of foreign equity capital entering the country.
en
dc.identifier
http://documents.worldbank.org/curated/en/470511523557571868/Capital-inflows-equity-issuance-activity-and-corporate-investment
dc.identifier.uri
http://hdl.handle.net/10986/29706
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 8405
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
CAPITAL FLOWS
dc.subject
CORPORATE FINANCE
dc.subject
EMERGING MARKET ECONOMIES
dc.subject
DOMESTIC INVESTORS
dc.subject
FOREIGN INVESTORS
dc.subject
EQUITY ISSUANCE
dc.subject
INVESTMENT
dc.subject
FOREIGN DIRECT INVESTMENT
dc.title
Capital Inflows, Equity Issuance Activity, and Corporate Investment
en
dc.type
Working Paper
en
okr.crossref.title
Capital Inflows, Equity Issuance Activity, and Corporate Investment
okr.date.disclosure
2018-04-12
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/470511523557571868/Capital-inflows-equity-issuance-activity-and-corporate-investment
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-8405
okr.identifier.externaldocumentum
090224b0865fad87_2_0
okr.identifier.internaldocumentum
29802181
okr.identifier.report
WPS8405
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/470511523557571868/pdf/WPS8405.pdf
en
okr.statistics.dr
470511523557571868
okr.topic
Finance and Financial Sector Development :: Capital Markets and Capital Flows
okr.topic
International Economics and Trade :: Capital Flows
okr.topic
International Economics and Trade :: Foreign Direct Investment
okr.topic
Macroeconomics and Economic Growth :: Investment and Investment Climate
okr.topic
Private Sector Development :: Emerging Markets
okr.unit
Macroeconomics and Growth Team, Development Research Group

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