Knill, April M.2012-05-312012-05-312008-08https://hdl.handle.net/10986/6815Using a unique dataset, the author examines the impact of foreign portfolio investment on the capital issuance behavior of small listed firms. The author finds that foreign portfolio investment is associated with an increased probability of small firm security issuance in all nations, regardless of property rights development. Evidence suggests the mechanism by which this occurs is a freeing up of capital in domestic markets when large firms utilize the foreign investment directly. Debt levels in nations where property rights are more developed increase, suggesting that foreign portfolio investment may reach small firms through the banking channel as well as capital markets in these nations.CC BY 3.0 IGOACCESS TO BANKACCESS TO CAPITALACCESS TO FINANCEACCESS TO FINANCINGACCOUNTINGAGGREGATE DEMANDALLOCATION OF CAPITALAMOUNT OF CAPITALAMOUNT OF CREDITAMOUNT OF DEBTASSET VALUESBALANCE OF PAYMENTSBALANCE SHEETBALANCE SHEETSBANK BALANCE SHEETSBANK CREDITBANK DEBTBANK LENDINGBANK LOANSBANK POLICYBANK REGULATIONBANKING CRISESBANKING SECTORBANKRUPTCYBENEFICIARYBIASESBOOK VALUEBRIBESBUSINESS CYCLECAPITAL ALLOCATIONCAPITAL CONSTRAINTSCAPITAL FLOWCAPITAL FLOWSCAPITAL GROWTHCAPITAL INFLOWSCAPITAL INVESTMENTSCAPITAL MARKETCAPITAL MARKET LIBERALIZATIONCAPITAL MARKETSCAPITAL RAISINGCAPITAL STRUCTURECAPITAL STRUCTURESCASH FLOWCASH FLOWSCASH INFLOWSCOLLATERALCOMMON STOCKCONSUMPTION EXPENDITURECORPORATE DEBTCORPORATE FINANCECORPORATE TAX RATESCORRUPTIONCOUNTRY DEBTCOUNTRY RISKCREDIT AVAILABILITYCREDIT CRUNCHCURRENCYDEBTDEBT CAPITALDEBT ISSUANCEDEBT ISSUANCESDEBT ISSUESDEBT LEVELSDEBT MATURITYDEBT SECURITIESDEPOSITORYDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDOMESTIC BANKSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETDOMESTIC CREDITDOMESTIC MARKETDOMESTIC MARKETSDUMMY VARIABLEEARNINGSECONOMIC ACTIVITYEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET EQUITYEMERGING MARKETSEQUITY INVESTMENTEQUITY INVESTMENTSEQUITY ISSUANCESEQUITY ISSUESEQUITY MARKETEQUITY MARKETSEQUITY OFFERINGSEQUITY SECURITIESEXCHANGE CONTROLSEXCHANGE RATESEXCLUSIONEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL FUNDSEXTERNALITIESFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL NEEDFINANCIAL SERVICESFINANCIAL STUDIESFINANCIAL SYSTEMSFINANCING NEEDSFINANCING OBSTACLESFISCAL BURDENFIXED ASSETSFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGESFOREIGN INVESTMENTFOREIGN INVESTORSFOREIGN OWNERSFOREIGN PORTFOLIOFOREIGN PORTFOLIO INVESTMENTFORMS OF DEBTGDPGLOBAL CAPITALGOVERNMENT EXPENDITURESGROSS DOMESTIC PRODUCTGROWTH RATEHOLDINGSILLIQUIDITYINCOME TAXINFLATIONINFORMATION ASYMMETRYINSTITUTIONAL INVESTORSINTEREST RATESINTERNAL FINANCINGINTERNATIONAL CAPITALINTERNATIONAL DIVERSIFICATIONINTERNATIONAL FINANCEINVESTINGINVESTMENT CAPITALINVESTMENT POLICYINVESTMENT RISKINVESTOR DEMANDINVESTOR PROTECTIONISSUANCELACK OF TRANSPARENCYLEGAL SYSTEMLENDING PRACTICESLEVEL OF DEBTLEVEL OF RISKLEVYLIQUIDATIONLOANLOAN FUNDSLONG-TERM DEBTMACROECONOMIC CONDITIONSMACROECONOMIC CONTROLMACROECONOMIC DATAMACROECONOMIC VARIABLESMARGINAL COEFFICIENTSMARKET CAPITALIZATIONMARKET FINANCEMARKET INTEGRATIONMARKET VALUEMARKETABLE SECURITIESMATURITYMATURITY OF LOANSMATURITY STRUCTUREMONETARY FUNDMONETARY POLICYMONEY SUPPLYMULTINATIONALMUTUAL FUNDSOPEN FINANCIAL MARKETSORGANIZATIONAL FORMOUTSTANDING DEBTPERSONAL PROPERTYPORTFOLIOPORTFOLIO CAPITALPORTFOLIO INFLOWSPORTFOLIOSPOSITIVE EXTERNALITIESPRIVATE CAPITALPRIVATE PLACEMENTPROFITABILITYPROFITABILITY RATIOPROPERTY RIGHTSPROPERTY RIGHTS PROTECTIONPUBLIC DEBTPUBLIC MARKETSPUBLIC POLICYREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESRECEIPTRECEIPTSRESERVESRETURNRETURN ON ASSETSRETURNSRETURNS TO SCALESAVINGSSECURITIESSECURITIES LAWSSHAREHOLDERSSHORT-TERM DEBTSMALL BANKSSOURCES OF FUNDSSTOCK EXCHANGESTOCK MARKETSUBSTITUTION EFFECTTANGIBLE ASSETSTAXTAX BURDENTAX RATESTAXATIONTOTAL DEBTTRADE CREDITVALUE OF ASSETSWEALTHWEALTH EFFECTSWORLD FINANCIAL MARKETSYANKEE BONDSWorld Bank10.1596/1813-9450-3796