Navigating Global Waters: An Analysis of Nordic Bond Issuances in International Bond Markets
(2024) BUSN79 20241Department of Business Administration
- Abstract
- This paper seeks to further explore the determinants that lead Nordic firms to raise capital through foreign debt issuance rather than domestic debt. Specifically, this study mainly analyzes the firm-specific and bond-specific factors that tend to influence firms to issue bonds in foreign markets. This paper uses quantitative data collection with a Deductive Research Approach. Both Linear Probability and Probit models are used to analyze the data. The applied theories in this paper are Pecking Order Theory, Agency Cost Theory and Capital Structure Theory. This paper includes 2 755 corporate bond issuances in total, of which 1 009 are international and 1 746 are domestic bonds. The data is collected from Refinitiv Eikon and CapitalIQ and... (More)
- This paper seeks to further explore the determinants that lead Nordic firms to raise capital through foreign debt issuance rather than domestic debt. Specifically, this study mainly analyzes the firm-specific and bond-specific factors that tend to influence firms to issue bonds in foreign markets. This paper uses quantitative data collection with a Deductive Research Approach. Both Linear Probability and Probit models are used to analyze the data. The applied theories in this paper are Pecking Order Theory, Agency Cost Theory and Capital Structure Theory. This paper includes 2 755 corporate bond issuances in total, of which 1 009 are international and 1 746 are domestic bonds. The data is collected from Refinitiv Eikon and CapitalIQ and covers the years between 2014 and 2023. Our study finds that the primary firm-specific factors influencing a firm's decision to issue in foreign capital markets, rather than domestic ones, is its level of indebtedness and its level of profitability. Regarding the specifics of the issuances, the key factor that influence firms to opt for international issuance is the placement amount. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9168984
- author
- Skoczylas, Jakub LU and Kmet, Kevin LU
- supervisor
- organization
- course
- BUSN79 20241
- year
- 2024
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Corporate bonds, Nordics, debt capital markets, international bonds, domestic bonds, global bonds, Eurobonds, foreign bonds, pecking order theory, agency cost theory, market depth hypothesis, capital structure theory
- language
- English
- id
- 9168984
- date added to LUP
- 2024-08-07 16:47:52
- date last changed
- 2024-08-07 16:47:52
@misc{9168984,
abstract = {{This paper seeks to further explore the determinants that lead Nordic firms to raise capital through foreign debt issuance rather than domestic debt. Specifically, this study mainly analyzes the firm-specific and bond-specific factors that tend to influence firms to issue bonds in foreign markets. This paper uses quantitative data collection with a Deductive Research Approach. Both Linear Probability and Probit models are used to analyze the data. The applied theories in this paper are Pecking Order Theory, Agency Cost Theory and Capital Structure Theory. This paper includes 2 755 corporate bond issuances in total, of which 1 009 are international and 1 746 are domestic bonds. The data is collected from Refinitiv Eikon and CapitalIQ and covers the years between 2014 and 2023. Our study finds that the primary firm-specific factors influencing a firm's decision to issue in foreign capital markets, rather than domestic ones, is its level of indebtedness and its level of profitability. Regarding the specifics of the issuances, the key factor that influence firms to opt for international issuance is the placement amount.}},
author = {{Skoczylas, Jakub and Kmet, Kevin}},
language = {{eng}},
note = {{Student Paper}},
title = {{Navigating Global Waters: An Analysis of Nordic Bond Issuances in International Bond Markets}},
year = {{2024}},
}