Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism

This paper documents to what extent firms from developing countries borrow short versus long term, using data on corporate bond and syndicated loan markets. Contrary to claims in the literature based on firm balance sheets, firms from developing co...

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Main Authors:	Cortina, Juan J., Didier, Tatiana, Schmukler, Sergio L.
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	CORPORATE BONDS DEBT MARKETS DEVELOPING COUNTRIES FIRM FINANCE ISSUANCE MATURITY LONG-TERM DEBT SHORT-TERM DEBT SYNDICATED LOANS CAPITAL MARKETS
Online Access:	http://documents.worldbank.org/curated/en/795161508437504068/Corporate-debt-maturity-in-developing-countries-sources-of-long-and-short-termism http://hdl.handle.net/10986/28557

id	okr-10986-28557
recordtype	oai_dc
spelling	okr-10986-285572021-06-08T14:42:45Z Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism Cortina, Juan J. Didier, Tatiana Schmukler, Sergio L. CORPORATE BONDS DEBT MARKETS DEVELOPING COUNTRIES FIRM FINANCE ISSUANCE MATURITY LONG-TERM DEBT SHORT-TERM DEBT SYNDICATED LOANS CAPITAL MARKETS This paper documents to what extent firms from developing countries borrow short versus long term, using data on corporate bond and syndicated loan markets. Contrary to claims in the literature based on firm balance sheets, firms from developing countries borrow through bonds and syndicated loans at maturities similar to those obtained by developed country firms. The composition and use of financing matters. Firms from developing countries borrow shorter term in domestic bond markets, but the differences in international issuances (accounting for most of the proceeds) are significantly smaller. Developing country firms borrow longer term in syndicated loan markets, which they partially use for infrastructure projects. However, only large firms from developing countries (similar in size to those from developed ones) issue bonds and syndicated loans. The short-termism in developing countries is partly explained by a lower proportion of firms using these markets, with more firms relying on other shorter-term instruments. 2017-10-20T21:41:21Z 2017-10-20T21:41:21Z 2017-10 Working Paper http://documents.worldbank.org/curated/en/795161508437504068/Corporate-debt-maturity-in-developing-countries-sources-of-long-and-short-termism http://hdl.handle.net/10986/28557 English en_US Policy Research Working Paper;No. 8222 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
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	CORPORATE BONDS DEBT MARKETS DEVELOPING COUNTRIES FIRM FINANCE ISSUANCE MATURITY LONG-TERM DEBT SHORT-TERM DEBT SYNDICATED LOANS CAPITAL MARKETS
spellingShingle	CORPORATE BONDS DEBT MARKETS DEVELOPING COUNTRIES FIRM FINANCE ISSUANCE MATURITY LONG-TERM DEBT SHORT-TERM DEBT SYNDICATED LOANS CAPITAL MARKETS Cortina, Juan J. Didier, Tatiana Schmukler, Sergio L. Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism
relation	Policy Research Working Paper;No. 8222
description	This paper documents to what extent firms from developing countries borrow short versus long term, using data on corporate bond and syndicated loan markets. Contrary to claims in the literature based on firm balance sheets, firms from developing countries borrow through bonds and syndicated loans at maturities similar to those obtained by developed country firms. The composition and use of financing matters. Firms from developing countries borrow shorter term in domestic bond markets, but the differences in international issuances (accounting for most of the proceeds) are significantly smaller. Developing country firms borrow longer term in syndicated loan markets, which they partially use for infrastructure projects. However, only large firms from developing countries (similar in size to those from developed ones) issue bonds and syndicated loans. The short-termism in developing countries is partly explained by a lower proportion of firms using these markets, with more firms relying on other shorter-term instruments.
format	Working Paper
author	Cortina, Juan J. Didier, Tatiana Schmukler, Sergio L.
author_facet	Cortina, Juan J. Didier, Tatiana Schmukler, Sergio L.
author_sort	Cortina, Juan J.
title	Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism
title_short	Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism
title_full	Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism
title_fullStr	Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism
title_full_unstemmed	Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism
title_sort	corporate debt maturity in developing countries : sources of long- and short-termism
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/795161508437504068/Corporate-debt-maturity-in-developing-countries-sources-of-long-and-short-termism http://hdl.handle.net/10986/28557
_version_	1764467142188597248

Corporate Debt Maturity in Developing Countries : Sources of Long- and Short-Termism

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