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This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access international capital markets. We find that debt-equity ratios do not increase after financial liberalization. Debt maturity shortens for the average firm when countries undertake financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises.

Finance: General --- Investments: Bonds --- Investments: Stocks --- General Financial Markets: General (includes Measurement and Data) --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Financial Markets and the Macroeconomy --- Finance --- Investment & securities --- International capital markets --- Stock markets --- Stocks --- Financial sector development --- International bonds --- Financial markets --- Financial institutions --- Capital market --- Stock exchanges --- Financial services industry --- Bonds --- Korea, Republic of

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There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it has been hypothesized that the relationship is a nonlinear one, in that there is a threshold level of inflation below which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross-country sample, empirical support is found for the existence of such a threshold. The estimates indicate that the threshold level of inflation is generally between 3 and 6 percent a year, depending on the specific measure of financial depth that is used.

Econometrics --- Finance: General --- Inflation --- Price Level --- Deflation --- Financial Markets and the Macroeconomy --- General Financial Markets: General (includes Measurement and Data) --- Truncated and Censored Models --- Switching Regression Models --- Threshold Regression Models --- Macroeconomics --- Finance --- Econometrics & economic statistics --- Stock markets --- Financial sector development --- Market capitalization --- Threshold analysis --- Prices --- Financial services industry --- Stock exchanges

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This is the first broad cross-country assessment of the ties between financial structure--the mix of financial instruments, institutions, and markets in a given economy--and economic growth since Raymond Goldsmith's 1969 landmark study. Most studies focus on developed countries and compare bank-based and market-based systems. Debates over the relative merits of the two systems have relied on case studies of Germany, Japan, the United Kingdom, and the United States, countries with similar long-run growth rates. The absence of data on developing countries limits the usefulness of such studies for policy makers.The book contains recently acquired cross-country data from almost 150 countries. It includes information on the size, efficiency, and activity of banks, insurance companies, pension and mutual funds, finance companies, and stock and bond markets. It also incorporates information on each country's political, economic, and social environment. The chapters contain a mix of case studies, cross-country studies, macro- and micro-oriented approaches, and analytical and empirical work. The conclusions point not to markets versus banks, but to markets and banks. It is how well a financial system functions that is critical for long-run economic growth. The research suggests that strong legal rights for outside investors and the overall efficiency of contract enforcement are effective tools for developing the financial sector and the economy. The book includes a CD containing World Bank data.

Banks and banking --- Financial institutions --- Stock exchanges --- Economic development --- Finance --- Business & Economics --- Banking --- Bulls and bears --- Commercial corners --- Corners, Commercial --- Equity markets --- Exchanges, Securities --- Exchanges, Stock --- Securities exchanges --- Stock-exchange --- Stock markets --- Financial intermediaries --- Lending institutions --- Agricultural banks --- Banking industry --- Commercial banks --- Depository institutions --- Capital market --- Efficient market theory --- Speculation --- Associations, institutions, etc. --- Money --- Bancos --- Estudio de casos. --- Instituciones financieras --- Bolsa de valores --- Desarrollo económico --- ECONOMICS/Finance --- ECONOMICS/Trade & Development --- ECONOMICS/International Economics

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This paper investigates whether there is a different impact from changes in "new" and "old" economy stock valuations on private investment for seven OECD economies. A vector autoregressive model is estimated for each individual country, using quarterly data over the period 1990-2000. We find that the impact from changes in valuations of new economy stocks to investment is roughly the same in North America and United Kingdom as in continental Europe. By contrast, the impact from changes in old economy stock valuations on investment is, in general, larger in North America and United Kingdom than in continental Europe. Finally, the results suggest that in continental Europe the impact on investment from changes in the valuation of new economy stocks is bigger than for old economy stocks, whereas for North America and United Kingdom the impact is more similar.

Finance: General --- Investments: General --- Investments: Stocks --- Macroeconomics --- Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- General Financial Markets: General (includes Measurement and Data) --- Investment --- Capital --- Intangible Capital --- Capacity --- Price Level --- Inflation --- Deflation --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Finance --- Investment & securities --- Stock markets --- Market capitalization --- Private investment --- Asset prices --- Stocks --- Financial markets --- Prices --- National accounts --- Financial institutions --- Stock exchanges --- Financial services industry --- Saving and investment --- United States

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This paper investigates if there is a different impact from changes in "new" and "old" economy stock valuations on private consumption. Estimating a reduced-form VAR for seven OECD countries for the 1990s, it is found that the impact from changes in old economy stock valuations on consumption is in general larger in the United States, Canada, and United Kingdom than in continental Europe. Furthermore, the impact from changes in new economy valuations to consumption is roughly the same in the United States, Canada, and United Kingdom and in continental Europe. Finally, the results suggest that in continental Europe the impact on consumption from changes in the valuation of new economy stocks is bigger than from the old economy stocks, whereas for the United States, Canada, and United Kingdom the impact is more or less the same between the two sectors.

Finance: General --- Investments: Stocks --- Macroeconomics --- Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- General Financial Markets: General (includes Measurement and Data) --- Macroeconomics: Consumption --- Saving --- Wealth --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Price Level --- Inflation --- Deflation --- Finance --- Investment & securities --- Stock markets --- Consumption --- Stocks --- Market capitalization --- Asset prices --- Financial markets --- National accounts --- Financial institutions --- Prices --- Stock exchanges --- Economics --- Financial services industry --- United States