Abstract
We use panel data techniques to analyze the debt and equity financing strategies of the non-financial firms operating in the G8 countries and the selected emerging economies and compare them with those adopted during the financial crisis of 2007-2008. For this purpose, we analyze corporate financial data of 9952 firms in the G8 and 10,531 firms in the emerging economies over 12 years (2003-2014) to understand the corporate financing strategies in two different business environments. We find an increase in corporate debt financing in the G8 as well as the emerging economies during the period of financial crisis. Specifically, the firms operating in the G8 increased short-term debt financing whereas the firms operating in the emerging economies increased long-term debt financing. We also find institutional factors playing their role significantly but differently during the period of financial crisis.