The Financing and Growth of Firms in China and India PDF Download

Author: Tatiana Didier
Publisher:
ISBN:
Category :
Languages : en
Pages : 63

View

Book Description
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.

Author: Tatiana Didier
Publisher:
ISBN:
Category : Capital market
Languages : en
Pages : 63

View

Book Description
"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."--Summary.

Author: Franklin Allen
Publisher:
ISBN:
Category :
Languages : en
Pages : 48

View

Book Description
The extraordinary performance of China and India's economies raises questions about the traditional measures of the size and depth of financial systems. While banks and markets have played a limited role in providing funds for corporate sectors and supporting economic growth in these two countries, non-state, non-listed firms, relying mostly on internal and alternative financing channels, have been growing faster than the state and listed sectors and contributing much of the growth. The alternative financing channels, excluded in the traditional measures of financial systems, operate outside legal institutions and are backed by alternative mechanisms such as reputation, relationships, and trust. We define the capacity of a financial system to be the total funding available for all corporate sectors in an economy. Our findings from China and India demonstrate that alternative finance can significantly expand the financial system capacity and promote growth at the firm level and economy wide.

Author: Leena Mary Eapen
Publisher:
ISBN:
Category : China
Languages : en
Pages : 312

View

Book Description
When a nation can create industrialization and employment, it produces sustained economic growth. This volume discusses industrial development in India and China and highlights key points of this issue through relevant case studies on top companies in the

Author: Franklin Allen
Publisher:
ISBN:
Category :
Languages : en
Pages : 96

View

Book Description
In this paper we examine and compare the formal systems of law and finance in China and India and the alternative institutional arrangements and governing mechanisms in the two countries, and the relation between the development of these systems and their economic growth. China differs from most of the countries studied in the law, institutions, finance, and growth literature: Its legal and financial systems as well as institutions are all underdeveloped, but its economy has been growing at a very fast rate. More importantly, the growth in the Private Sector, where applicable legal and financial mechanisms are arguably poorer than those in the State and Listed sectors, is much faster than that of the other sectors. The system of alternative mechanisms and institutions plays an important role in supporting the growth in the Private Sector, and they are good substitutes for standard corporate governance mechanisms and financing channels. Despite its English commonl aw origin and British-style judicial system and democratic government, there is enough documented evidence to suggest that the effective level of investor protection and the quality of legal institutions in India are quite weak as well. Once again, this has evidently not prohibited growth. We find that to a large extent Indian firms conduct business outside the formal legal system and do not rely on formal financing channels from markets and banks for most of their financing needs. Instead, firms across the board, and in particular, small and medium firms, use non-legal methods based on reputation, trust and relationships to settle disputes and enforce contracts, and rely on alternative financing channels such as trade credits to finance their growth. The scope, methodologies, and results of our paper paint a more complete picture of the law-finance-growth nexus and how businesses and investors respond to the limitations of legal system and formal financial system than existing studies.

Author: W. Tseng
Publisher: Springer
ISBN: 0230505759
Category : Business & Economics
Languages : en
Pages : 330

View

Book Description
Can China and India continue to rank among the fastest expanding economies? This book highlights what has worked and what more needs to be done to ensure sustained rapid economic growth and poverty reduction. Addressing the two countries' recent experiences with growth and reform, this book provides important insight for other developing economies.

Author: Barry Eichengreen
Publisher: Oxford University Press
ISBN: 019957507X
Category : Business & Economics
Languages : en
Pages : 401

View

Book Description
This book explores the rapid growth and development of China and India and looks at some of the issues this raises for the countries concerned, and their impact on the world economy.

Author: Robert F. Dernberger
Publisher:
ISBN:
Category : China
Languages : en
Pages : 152

View

Book Description
Comparisons of China and India are both tempting and unavoidable. These two giant neighbors comprise more than one-third of the world's total population in the developing countries. A comparison of the ways in which China and India have gone about their development efforts reveals some remarkable parallels and striking differences in the past and in what they plan to do in the future.

Author: International Monetary Fund. External Relations Dept.
Publisher: International Monetary Fund
ISBN: 1451922140
Category : Business & Economics
Languages : en
Pages : 60

View

Book Description
Young people, hardest hit by the global economic downturn, are speaking out and demanding change. F&D looks at the need to urgently address the challenges facing youth and create opportunities for them. Harvard professor David Bloom lays out the scope of the problem and emphasizes the importance of listening to young people in "Youth in the Balance." "Making the Grade" looks at how to teach today's young people what they need to get jobs. IMF Deputy Managing Director, Nemat Shafik shares her take on the social and economic consequences of youth unemployment in our "Straight Talk" column. "Scarred Generation" looks at the effects the global economic crisis had on young workers in advanced economies, and we hear directly from young people across the globe in "Voices of Youth." Renminbi's rise, financial system regulation, and boosting GDP by empowering women. Also in the magazine, we examine the rise of the Chinese currency, look at the role of the credit rating agencies, discuss how to boost the empowerment of women, and present our primer on macroprudential regulation, seen as increasingly important to financial stability. People in economics - C. Fred Bergsten, American Globalist. Back to basics - The multi-dimensional role of banks in our financial systems.

Author: Nobuharu Yokokawa
Publisher: Routledge
ISBN: 113409387X
Category : Business & Economics
Languages : en
Pages : 240

View

Book Description
This book provides new perspectives on recent Asian dynamism which go beyond the mainstream views, by attempting to situate the recent economic expansion within a broader analysis of capitalist accumulation and the various processes that it generates both within and across economies. The contributions in the book include analyses of recent growth patterns in both China and India; assessments of the sustainability of such growth and potential constraints and pitfalls; the role of international finance in affecting both national and international growth and employment patterns; the factors determining particular accumulation strategies and the results of these strategies. These forces within the two economies of China and India are situated within a broader assessment of the impacts on the world economy, by identifying long run tendencies in international capitalism and changing patterns of uneven development. Specific issues emerging within the Asian region are identified, including not just the relations between the three large Asian economies, but also the wider geopolitical implications as well as the political economy of these changes. This book therefore provides a more comprehensive examination of the longer run dynamics of the global capitalist system in which these economies are necessarily destined to play more significant roles in future.