European Integration and Corporate Financing

Muradoglu, Yaz Gulnur; Onay, Ceylan; Phylaktis, Kate

doi:10.2139/ssrn.1338108

European Integration and Corporate Financing

77 Pages Posted: 6 Feb 2009 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

Kate Phylaktis

City University London - Sir John Cass Business School

There 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: 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=1338108 or http://dx.doi.org/10.2139/ssrn.1338108