Financial integration in emerging markets affects how companies choose to finance their operations. A study of 4477 public firms from 24 countries shows that as credit markets become more integrated, firms tend to take on more debt. On the other hand, as equity markets integrate, firms tend to rely less on debt and issue more equity. During this integration process, high-growth and large firms tend to borrow more, especially long-term debt. Additionally, firms in countries with efficient legal systems can borrow more funds.