Issuing corporate securities in Slovakia against a backgroud of globalization

Abstract

Globalization creates pressure on all companies to become more competitive, including in acquiring financial resources. This paper assesses the current state and future development of the Slovak capital market in the light of that market`s history. We use data on past trends to interpret current developments. Corporate securities emissions have risen, but are still very low relative to GDP. We argue that the narrow interest spread between bank deposits and bank loans reduces incentives to create securities. But that could be a viable alternative when companies are unable to borrow from banks. Using a case study of Tatry Mountain Resorts a. s., we argue that Slovakia could be a good environment for corporate securities emissions, for globally active companies.

Keywords: globalization; securities; emission; bank loans; Slovak Republic;