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...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/28557 |
| Summary: | 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. |
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