CEU Electronic Theses and Dissertations, 2017
| Author | Mammadov, Farhad |
|---|---|
| Title | Effect of Global and Local Factors on Emerging Markets Non-Financial Corporate Bond Issuance |
| Summary | Financing through bond issuance is a relatively new phenomenon for emerging markets, especially for non-financial corporations. While access to and development of the global financial markets contributed to the recent surge in non-financial corporate bond issuance, effectiveness of local monetary policies might come under question in the face of financial globalization. In this paper, I analyzed the effect of local and global factors on the quantity of non-financial corporate bond issuance across selected emerging markets. The results suggest that global factors such as the global risk environment and the US real interest rate are more effective in explaining quarterly bond issuance than local factors. The study finds a negative relationship between the quantity of emerging markets non-financial bond issuance and global factors such as the VIX index (for the bonds denominated in USD) and the US real interest rate (for the bonds denominated in local currency). On the contrary, local factors such as domestic real interest rate, equity return and equity volatility seem to have no effect. The study calls for more rigorous and normative approach of local monetary policies aimed at the corporate debt sector. |
| Supervisor | Lieli, Robert |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2017/mammadov_farhad.pdf |
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