European Integration and Corporate Financing

77 Pages Posted: 10 Jul 2008 Last revised: 20 Jul 2013

See all articles by Yaz Gulnur Muradoglu

Yaz Gulnur Muradoglu

Queen Mary University of London; City University London - Sir John Cass Business School

Ceylan Onay

Bogazici University

Kate Phylaktis

City University London - Sir John Cass Business School

Multiple version iconThere are 2 versions of this paper

Date Written: July 17, 2013

Abstract

This paper explores the importance of supply of capital for corporate financing. To identify this relation, we examine the impact of two exogenous events, entry to the EU and the adoption of Euro, which caused shifts in equity and credit markets during European integration. Following membership to EU, which eased access to equity capital, firms increase equity financing. Firms increase debt financing after the adoption of Euro, which improved access to international debt capital. We control for globalisation, ongoing developments in equity and credit channels, firm characteristics, and the moderating effects of the country of origin.

Keywords: European Integration, Capital Structure, Debt Maturity, FDI, European Firms

JEL Classification: G15, G32, F36

Suggested Citation

Muradoglu, Yaz Gulnur and Onay, Ceylan and Phylaktis, Kate, European Integration and Corporate Financing (July 17, 2013). Available at SSRN: https://ssrn.com/abstract=1157868 or http://dx.doi.org/10.2139/ssrn.1157868

Yaz Gulnur Muradoglu (Contact Author)

Queen Mary University of London ( email )

Francis Bancroft Building
Mile End Road
London, E1 4NS
United Kingdom

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44 20 7040 0124 (Phone)
+44 20 7040 8853 (Fax)

Ceylan Onay

Bogazici University ( email )

Bebek, İstanbul 34342
Turkey

Kate Phylaktis

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44 20 70408735 (Phone)
+44 20 70408881 (Fax)

HOME PAGE: http://www.cass.city.ac.uk/faculty/k.phylaktis/

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