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Capital structure and the issuance of corporate bonds in emerging Asia

Mizen, Paul; Packer, Frank; Remolona, Eli; Tsoukas, Serafeim

Authors

PAUL MIZEN paul.mizen@nottingham.ac.uk
Professor of Monetary Economics

Frank Packer frank.packer@bis.org

Eli Remolona eli.remolona@bis.org

Serafeim Tsoukas Serafeim.Tsoukas@glasgow.ac.uk



Contributors

Iwan J. Azis
Editor

Hyun S. Shin
Editor

Abstract

In emerging Asia's local-currency bond market, the government bond segments have largely come of age while the corporate bond markets have remained immature. This paper focuses on the question of what drives corporate bond issuance, an issue of great practical relevance for policymakers in the region. We analyse the financing decisions of some 4,600 firms in eight countries in emerging Asia. We analyse these decisions within the context of the firms'capital structure. We also analyse the effect of market depth, relying on market-wide indicators from the BIS. We find that for both seasoned and unseasoned issuers, size and leverage both matter for the decision to issue. The availability of tangible assets matters for the decision to issue in foreign currency. At the level of the markets, the depth of the market and interest differentials matter.

Publication Date Dec 26, 2014
Peer Reviewed Peer Reviewed
Series Title ADBI series on Asian economic integration and cooperation
Book Title Global shock, risks, and Asian financial reform
ISBN 9781783477937
APA6 Citation Mizen, P., Packer, F., Remolona, E., & Tsoukas, S. (2014). Capital structure and the issuance of corporate bonds in emerging Asia. In I. J. Azis, & H. S. Shin (Eds.), Global shock, risks, and Asian financial reformEdward Elgar. doi:10.4337/9781783477944
DOI https://doi.org/10.4337/9781783477944
Keywords Bond financing, Capital structure, Emerging markets, Asian bond markets
Publisher URL http://www.elgaronline.com/view/9781783477937.00025.xml
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

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ADB paper Aug30 2013 (pdf file).pdf (301 Kb)
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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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