Capital structure and the issuance of corporate bonds in emerging Asia

Mizen, Paul and Packer, Frank and Remolona, Eli and Tsoukas, Serafeim (2014) Capital structure and the issuance of corporate bonds in emerging Asia. In: Global shock, risks, and Asian financial reform. ADBI series on Asian economic integration and cooperation . Edward Elgar, Cheltenham, pp. 510-540. ISBN 9781783477937

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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.

Item Type: Book Section
Keywords: Bond financing, Capital structure, Emerging markets, Asian bond markets
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
Identification Number: https://doi.org/10.4337/9781783477944
Depositing User: Kesaite, Viktorija
Date Deposited: 09 Sep 2015 13:12
Last Modified: 20 Sep 2016 15:12
URI: http://eprints.nottingham.ac.uk/id/eprint/29868

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