Determinants of the sources of financing in emerging markets

<p>The aim of this research is to define the determinants of the sources of financing in the emerging markets. The main objectives of the research are the following: analysis of studies devoted to the problem on the developed and developing markets, detection of the most significant factors, influencing capital structure choice,&nbsp;review of the methodological approaches of the influence of various determinants on the financing policy of the companies in these papers, creation of the empirical model of choosing the form of financing in the emerging markets, identification of the significant determinants, influencing the choice of the form on financing in the emerging markets, identification of the macroeconomic and institutional characteristics that determine the choice of the form of financing. The sample includes large companies from Brazil, Russia, India, China and South Africa. The&nbsp;sources of information are&nbsp;&nbsp;Bloomberg database, information database Reuters, company&#39;s webpages, cites C-Bonds, RBK Quote, InfoIPO, RuBonds.The period of the research is from 2005 till 2012. In order to achieve the presented aim and objectives of the research the two-stage model was applied. On the first step the target leverge ratio was created. On the second stage the logit regressions of explanatory variables on the probability of issuing exact form of financing (dummy variable) were run. The resuls of the research are the following. Firstly, the traditional determinants of capital structure influence leve of the the target leverage ratio. Secondly, the companys nationalality determines the direction of influence of the target leverage determinants. Thirdly, whil choosing the sources of financing the following determinants are significiant: target leverage ratio, liquidity of assets, non-debt tax shield, curren debt burden, Q-Tobin. Moreover, the direction of influence of the determinants, defining the choice between equity issuance and short-term debt and the choice between equity issuance and long-term debt, is equal for companies from Brazil, India, China and South Africa and is not the same for companies from Russia.&nbsp;</p><div><div>&nbsp;</div></div><div><div>&nbsp;</div></div><p>&nbsp;</p>