Corporate Financial Structure and Financial Stability
July 1, 2004
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary
This paper uses flow-of-funds and balance sheet data to analyze the impact of financial crises on corporate financing and GDP in a range of countries. Post-crisis GDP contractions are mainly accounted for by declines in investment and inventory and are more severe for emerging market countries. Post-crisis investment and inventory declines are correlated with the corporate debtequity ratio. Although companies in emerging market countries hold more liquidity, this is not sufficient to prevent a greater response of expenditures to shocks. Industrial countries appear to benefit from an offsetting increase in bond issuance.
Subject: Bank credit, Banking crises, Currency crises, Emerging and frontier financial markets, Financial crises, Financial markets, Money
Keywords: Africa, Bank credit, bank crisis dynamics, bank lending, Banking crises, banking crisis, changes range, Corporate finance, crisis effect, Currency crises, currency crisis, currency crisis dummy, Emerging and frontier financial markets, emerging market country, emerging market result, external finance, financial instability, flows data, GDP contraction, GDP flows data, OECD country, output changes range, ratio rise, real gross domestic product, trade credit, WP
Pages:
49
Volume:
2004
DOI:
Issue:
124
Series:
Working Paper No. 2004/124
Stock No:
WPIEA1242004
ISBN:
9781451854756
ISSN:
1018-5941
