TY - BOOK ID - 136023145 TI - The Financing and Growth of Firms in China and India : Evidence from Capital Markets AU - Didier, Tatiana AU - Schmukler, Sergio L. PY - 2013 PB - Washington, D.C., The World Bank, DB - UniCat KW - Access to Finance KW - Access to finance KW - Banks & Banking Reform KW - Bond markets KW - Capital market development KW - Capital raising KW - Debt Markets KW - Economic Theory & Research KW - Finance and Financial Sector Development KW - Firm dynamics KW - Firm size distribution KW - Macroeconomics and Economic Growth KW - Microfinance KW - Stock markets UR - https://www.unicat.be/uniCat?func=search&query=sysid:136023145 AB - This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using a unique data set on domestic and international capital raising activity and firm performance, it finds that the expansion of financial market activity since the 1990s has been more limited than what the aggregate figures suggest. Relatively few firms raise capital. Even fewer firms capture the bulk of the financing. Moreover, firms that issue equity or bonds are different and behave differently from other publicly listed firms. Among other things, they are typically larger and grow faster. The differences between users and non-users exist before the capital raising activity, are associated with the probability of raising capital, and become more accentuated afterward. The distribution of issuing firms shifts more over time than the distribution of those that do not issue, suggesting little convergence in firm size among listed firms. ER -