The Financing and Growth of Firms in China and India : Evidence from Capital Markets
This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using a unique data set on domestic and international capital raising activity and firm performance, it finds that the expansion of fi...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/04/17548887/financing-growth-firms-china-india-evidence-capital-markets http://hdl.handle.net/10986/13198 |
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okr-10986-13198 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO CAPITAL ACCESS TO FINANCE ACCOUNTING ACCOUNTING STANDARDS ADB AGRICULTURE AMOUNT OF CAPITAL ASIAN BOND MARKETS BALANCE SHEET BANK ASSETS BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK POLICY BANKING SECTOR BANKING SYSTEM BENCHMARK BOND BOND FINANCING BOND ISSUANCE BOND MARKET BOND MARKET CAPITALIZATION BOND MARKETS BONDS BROKERS BUSINESS OPPORTUNITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKET ACTIVITY CAPITAL MARKET DEVELOPMENT CAPITAL MARKET FINANCING CAPITAL MARKETS CAPITAL RAISING CAPITAL STRUCTURE CASH FLOWS COMMERCIAL PAPER COMPANY COMPARATIVE ECONOMICS CONSUMER PRICE INDEX CORPORATE BOND CORPORATE BOND ISSUES CORPORATE BOND MARKETS CORPORATE FINANCING CORPORATE VALUATION CORPORATION CORPORATIONS COST OF CAPITAL DEBT DEBT ISSUES DEREGULATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC BOND DOMESTIC BOND MARKET DOMESTIC BOND MARKETS DOMESTIC EQUITY DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIBERALIZATION EMERGING ECONOMIES EMERGING STOCK MARKET EMPLOYEE EQUALITY EQUITIES EQUITY CAPITAL EQUITY FINANCING EQUITY ISSUANCE EQUITY ISSUES EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY MARKETS EQUITY SECURITIES EVOLUTIONARY ECONOMICS EXCHANGE RATE EXCLUSION EXPANSION EXPENDITURE EXPENDITURES EXTERNAL CAPITAL FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ASSETS FINANCIAL CHALLENGES FINANCIAL CRISIS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL GLOBALIZATION FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIRMS FIXED CAPITAL FOREIGN CAPITAL FOREIGN EQUITY FOREIGN FINANCING FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS GDP GLOBAL FINANCE GLOBALIZATION GREATER ACCESS GROUP OF FIRMS GROWTH OPPORTUNITIES GROWTH RATE INFLATION INFORMAL FINANCE INITIAL PUBLIC OFFERING INSTITUTIONAL DEVELOPMENT INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INTERNAL FINANCE INTERNAL FINANCING INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL COMMERCE INTERNATIONAL DIVERSIFICATION INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL MARKETS INTERNATIONAL SETTLEMENTS INTERNATIONAL TRADE INVENTORIES INVESTMENT BANKS INVESTMENT CAPITAL INVESTMENT OPPORTUNITIES IPO ISSUANCES KEY PERFORMANCE INDICATORS LEGAL CONSTRAINTS LIABILITY LIQUIDITY LIQUIDITY CONSTRAINTS LISTED COMPANIES LOCAL MARKETS LONG-TERM LIABILITIES MACROECONOMICS MARKET CONDITIONS MARKET DEPTH MARKET REFORMS MATURITY MATURITY STRUCTURE MERCHANTS MERGERS MUTUAL FUNDS OPEN ECONOMIES OWNERSHIP STRUCTURE PENSION PENSION FUNDS POLITICAL ECONOMY PORTFOLIO PORTFOLIO HOLDINGS PRIVATE BOND PRODUCTIVITY PROFITABILITY PUBLIC SECTOR BONDS REAL ESTATE RECEIPT RETAINED EARNINGS RETURN RETURN ON ASSETS SALES GROWTH SAVINGS SECONDARY MARKET SECONDARY MARKET ACTIVITY SECURITIES SECURITIES MARKETS SIDE EFFECTS SMALL FIRMS STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS SUBSIDIARIES TRADE CREDIT TRADING TRANSACTION VALUATION WTO |
| spellingShingle |
ACCESS TO CAPITAL ACCESS TO FINANCE ACCOUNTING ACCOUNTING STANDARDS ADB AGRICULTURE AMOUNT OF CAPITAL ASIAN BOND MARKETS BALANCE SHEET BANK ASSETS BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK POLICY BANKING SECTOR BANKING SYSTEM BENCHMARK BOND BOND FINANCING BOND ISSUANCE BOND MARKET BOND MARKET CAPITALIZATION BOND MARKETS BONDS BROKERS BUSINESS OPPORTUNITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKET ACTIVITY CAPITAL MARKET DEVELOPMENT CAPITAL MARKET FINANCING CAPITAL MARKETS CAPITAL RAISING CAPITAL STRUCTURE CASH FLOWS COMMERCIAL PAPER COMPANY COMPARATIVE ECONOMICS CONSUMER PRICE INDEX CORPORATE BOND CORPORATE BOND ISSUES CORPORATE BOND MARKETS CORPORATE FINANCING CORPORATE VALUATION CORPORATION CORPORATIONS COST OF CAPITAL DEBT DEBT ISSUES DEREGULATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC BOND DOMESTIC BOND MARKET DOMESTIC BOND MARKETS DOMESTIC EQUITY DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIBERALIZATION EMERGING ECONOMIES EMERGING STOCK MARKET EMPLOYEE EQUALITY EQUITIES EQUITY CAPITAL EQUITY FINANCING EQUITY ISSUANCE EQUITY ISSUES EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY MARKETS EQUITY SECURITIES EVOLUTIONARY ECONOMICS EXCHANGE RATE EXCLUSION EXPANSION EXPENDITURE EXPENDITURES EXTERNAL CAPITAL FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ASSETS FINANCIAL CHALLENGES FINANCIAL CRISIS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL GLOBALIZATION FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIRMS FIXED CAPITAL FOREIGN CAPITAL FOREIGN EQUITY FOREIGN FINANCING FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS GDP GLOBAL FINANCE GLOBALIZATION GREATER ACCESS GROUP OF FIRMS GROWTH OPPORTUNITIES GROWTH RATE INFLATION INFORMAL FINANCE INITIAL PUBLIC OFFERING INSTITUTIONAL DEVELOPMENT INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INTERNAL FINANCE INTERNAL FINANCING INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL COMMERCE INTERNATIONAL DIVERSIFICATION INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL MARKETS INTERNATIONAL SETTLEMENTS INTERNATIONAL TRADE INVENTORIES INVESTMENT BANKS INVESTMENT CAPITAL INVESTMENT OPPORTUNITIES IPO ISSUANCES KEY PERFORMANCE INDICATORS LEGAL CONSTRAINTS LIABILITY LIQUIDITY LIQUIDITY CONSTRAINTS LISTED COMPANIES LOCAL MARKETS LONG-TERM LIABILITIES MACROECONOMICS MARKET CONDITIONS MARKET DEPTH MARKET REFORMS MATURITY MATURITY STRUCTURE MERCHANTS MERGERS MUTUAL FUNDS OPEN ECONOMIES OWNERSHIP STRUCTURE PENSION PENSION FUNDS POLITICAL ECONOMY PORTFOLIO PORTFOLIO HOLDINGS PRIVATE BOND PRODUCTIVITY PROFITABILITY PUBLIC SECTOR BONDS REAL ESTATE RECEIPT RETAINED EARNINGS RETURN RETURN ON ASSETS SALES GROWTH SAVINGS SECONDARY MARKET SECONDARY MARKET ACTIVITY SECURITIES SECURITIES MARKETS SIDE EFFECTS SMALL FIRMS STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS SUBSIDIARIES TRADE CREDIT TRADING TRANSACTION VALUATION WTO Didier, Tatiana Schmukler, Sergio L. The Financing and Growth of Firms in China and India : Evidence from Capital Markets |
| geographic_facet |
East Asia and Pacific South Asia China India |
| relation |
Policy Research Working Paper;No. 6401 |
| description |
This paper studies the extent to which
firms in China and India use capital markets to obtain
financing and grow. Using a unique data set on domestic and
international capital raising activity and firm performance,
it finds that the expansion of financial market activity
since the 1990s has been more limited than what the
aggregate figures suggest. Relatively few firms raise
capital. Even fewer firms capture the bulk of the financing.
Moreover, firms that issue equity or bonds are different and
behave differently from other publicly listed firms. Among
other things, they are typically larger and grow faster. The
differences between users and non-users exist before the
capital raising activity, are associated with the
probability of raising capital, and become more accentuated
afterward. The distribution of issuing firms shifts more
over time than the distribution of those that do not issue,
suggesting little convergence in firm size among listed firms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Didier, Tatiana Schmukler, Sergio L. |
| author_facet |
Didier, Tatiana Schmukler, Sergio L. |
| author_sort |
Didier, Tatiana |
| title |
The Financing and Growth of Firms in China and India : Evidence from Capital Markets |
| title_short |
The Financing and Growth of Firms in China and India : Evidence from Capital Markets |
| title_full |
The Financing and Growth of Firms in China and India : Evidence from Capital Markets |
| title_fullStr |
The Financing and Growth of Firms in China and India : Evidence from Capital Markets |
| title_full_unstemmed |
The Financing and Growth of Firms in China and India : Evidence from Capital Markets |
| title_sort |
financing and growth of firms in china and india : evidence from capital markets |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/04/17548887/financing-growth-firms-china-india-evidence-capital-markets http://hdl.handle.net/10986/13198 |
| _version_ |
1764422946585051136 |
| spelling |
okr-10986-131982021-04-23T14:03:07Z The Financing and Growth of Firms in China and India : Evidence from Capital Markets Didier, Tatiana Schmukler, Sergio L. ACCESS TO CAPITAL ACCESS TO FINANCE ACCOUNTING ACCOUNTING STANDARDS ADB AGRICULTURE AMOUNT OF CAPITAL ASIAN BOND MARKETS BALANCE SHEET BANK ASSETS BANK FINANCING BANK FOR INTERNATIONAL SETTLEMENTS BANK POLICY BANKING SECTOR BANKING SYSTEM BENCHMARK BOND BOND FINANCING BOND ISSUANCE BOND MARKET BOND MARKET CAPITALIZATION BOND MARKETS BONDS BROKERS BUSINESS OPPORTUNITIES CAPITAL EXPENDITURES CAPITAL MARKET CAPITAL MARKET ACTIVITY CAPITAL MARKET DEVELOPMENT CAPITAL MARKET FINANCING CAPITAL MARKETS CAPITAL RAISING CAPITAL STRUCTURE CASH FLOWS COMMERCIAL PAPER COMPANY COMPARATIVE ECONOMICS CONSUMER PRICE INDEX CORPORATE BOND CORPORATE BOND ISSUES CORPORATE BOND MARKETS CORPORATE FINANCING CORPORATE VALUATION CORPORATION CORPORATIONS COST OF CAPITAL DEBT DEBT ISSUES DEREGULATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC BOND DOMESTIC BOND MARKET DOMESTIC BOND MARKETS DOMESTIC EQUITY DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE DUMMY VARIABLES EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LIBERALIZATION EMERGING ECONOMIES EMERGING STOCK MARKET EMPLOYEE EQUALITY EQUITIES EQUITY CAPITAL EQUITY FINANCING EQUITY ISSUANCE EQUITY ISSUES EQUITY MARKET EQUITY MARKET CAPITALIZATION EQUITY MARKETS EQUITY SECURITIES EVOLUTIONARY ECONOMICS EXCHANGE RATE EXCLUSION EXPANSION EXPENDITURE EXPENDITURES EXTERNAL CAPITAL FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ASSETS FINANCIAL CHALLENGES FINANCIAL CRISIS FINANCIAL DEEPENING FINANCIAL DEVELOPMENT FINANCIAL GLOBALIZATION FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIRMS FIXED CAPITAL FOREIGN CAPITAL FOREIGN EQUITY FOREIGN FINANCING FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS GDP GLOBAL FINANCE GLOBALIZATION GREATER ACCESS GROUP OF FIRMS GROWTH OPPORTUNITIES GROWTH RATE INFLATION INFORMAL FINANCE INITIAL PUBLIC OFFERING INSTITUTIONAL DEVELOPMENT INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INTERNAL FINANCE INTERNAL FINANCING INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL COMMERCE INTERNATIONAL DIVERSIFICATION INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL MARKETS INTERNATIONAL SETTLEMENTS INTERNATIONAL TRADE INVENTORIES INVESTMENT BANKS INVESTMENT CAPITAL INVESTMENT OPPORTUNITIES IPO ISSUANCES KEY PERFORMANCE INDICATORS LEGAL CONSTRAINTS LIABILITY LIQUIDITY LIQUIDITY CONSTRAINTS LISTED COMPANIES LOCAL MARKETS LONG-TERM LIABILITIES MACROECONOMICS MARKET CONDITIONS MARKET DEPTH MARKET REFORMS MATURITY MATURITY STRUCTURE MERCHANTS MERGERS MUTUAL FUNDS OPEN ECONOMIES OWNERSHIP STRUCTURE PENSION PENSION FUNDS POLITICAL ECONOMY PORTFOLIO PORTFOLIO HOLDINGS PRIVATE BOND PRODUCTIVITY PROFITABILITY PUBLIC SECTOR BONDS REAL ESTATE RECEIPT RETAINED EARNINGS RETURN RETURN ON ASSETS SALES GROWTH SAVINGS SECONDARY MARKET SECONDARY MARKET ACTIVITY SECURITIES SECURITIES MARKETS SIDE EFFECTS SMALL FIRMS STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS SUBSIDIARIES TRADE CREDIT TRADING TRANSACTION VALUATION WTO This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using a unique data set on domestic and international capital raising activity and firm performance, it finds that the expansion of financial market activity since the 1990s has been more limited than what the aggregate figures suggest. Relatively few firms raise capital. Even fewer firms capture the bulk of the financing. Moreover, firms that issue equity or bonds are different and behave differently from other publicly listed firms. Among other things, they are typically larger and grow faster. The differences between users and non-users exist before the capital raising activity, are associated with the probability of raising capital, and become more accentuated afterward. The distribution of issuing firms shifts more over time than the distribution of those that do not issue, suggesting little convergence in firm size among listed firms. 2013-04-18T16:32:32Z 2013-04-18T16:32:32Z 2013-04 http://documents.worldbank.org/curated/en/2013/04/17548887/financing-growth-firms-china-india-evidence-capital-markets http://hdl.handle.net/10986/13198 English en_US Policy Research Working Paper;No. 6401 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific South Asia China India |