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...

Financialization creates space for the financial sector in economies, and in doing so helps to raise the share of financial assets in the portfolios held by market participants. Largely driven by deregulation, the process works to make financial assets relatively attractive as compared to other...

Since India embarked on a period of reform, the corporate financial structures have depended on the firms' characteristics. For example, new, small, unprofitable, high-risk firms tend to depend more heavily on domestic loans than old, large, profitable, low-risk firms, as the latter can generate...