Corporate Finance and Economic Activity in the Euro Area: Structural Issues Report 2013

153 Pages Posted: 9 Sep 2013

See all articles by Diego Rodriguez-Palenzuela

Diego Rodriguez-Palenzuela

European Central Bank (ECB)

Matthieu Darracq Paries

European Central Bank (ECB)

Giacomo Carboni

European Central Bank(ECB)

Annalisa Ferrando

European Central Bank (ECB)

Petra Köhler Ulbrich

European Central Bank (ECB)

Marie-Denise Zachary

National Bank of Belgium

Felix Geiger

Deutsche Bundesbank

Manuel Rupprecht

Münster University of Applied Sciences; Deutsche Bundesbank

Taavi Raudsaar

Bank of Estonia

Fergal McCann

Central Bank of Ireland

Vasileios Georgakopoulos

Bank of Greece

Carmen Martinez-Carrascal

Banco de España

Juan Carluccio

Banque de France; Paris School of Economics

Guillaume Horny

Banque de France

Paolo Finaldi Russo

Bank of Italy

Demetris Kapatais

Central Bank of Cyprus

Ladislav Wintr

Banque Centrale du Luxembourg

Elaine Caruana Briffa

Central Bank of Malta

Paul Metzemakers

De Nederlandsche Bank

Koen van der Veer

De Nederlandsche Bank

Walter Waschiczek

Oesterreichische Nationalbank (OeNB)

Maria Luísa Alcoforado Farinha

Bank of Portugal

Uros Herman

Goethe University Frankfurt, House of Finance (HoF), Graduate School of Economics, Finance and Management (GSEFM), Students

Alexander Karsay

National Bank of Slovakia

Petri Mäki-Fränti

Bank of Finland

Francois Servant

Banque de France

Antonio De Socio

Bank of Italy

Fiorella De Fiore

Bank for International Settlements (BIS) - Monetary and Economic Department

Andreas Hertkorn

European Central Bank (ECB)

Michele Lenza

European Central Bank (ECB)

Giovanni Vitale

European Central Bank (ECB)

Branislav Karma

National Bank of Slovakia

Date Written: June 26, 2013

Abstract

This report analyses and reviews the corporate finance structure of non-financial corporations (NFCs) in the euro area, including how they interact with the macroeconomic environment. Special emphasis is placed on the crisis that began in 2007-08, thus underlining the relevance of financing and credit conditions to investment and economic activity in turbulent times. When approaching such a broad topic, a number of key questions arise. How did the corporate sector’s capital structure, internal and external financing sources, and its tendency to leverage, evolve in the euro area over the last decade and in the run-up to the financial crisis in particular? Did these developments contribute to and/or exacerbate the financial crisis? Did the corporate sector’s response to various shocks and vulnerabilities support or encumber the euro area economy, both during the financial crisis and in its aftermath?

Keywords: Corporate finance

JEL Classification: E0, E5

Suggested Citation

Rodriguez-Palenzuela, Diego and Darracq Paries, Matthieu and Carboni, Giacomo and Ferrando, Annalisa and Köhler Ulbrich, Petra and Zachary, Marie-Denise and Geiger, Felix and Rupprecht, Manuel and Raudsaar, Taavi and McCann, Fergal and Georgakopoulos, Vasileios and Martinez-Carrascal, Carmen and Carluccio, Juan and Horny, Guillaume and Finaldi Russo, Paolo and Kapatais, Demetris and Wintr, Ladislav and Caruana Briffa, Elaine and Metzemakers, Paul and van der Veer, Koen and Waschiczek, Walter and Alcoforado Farinha, Maria Luísa and Herman, Uros and Karsay, Alexander and Mäki-Fränti, Petri and Servant, Francois and De Socio, Antonio and De Fiore, Fiorella and Hertkorn, Andreas and Lenza, Michele and Vitale, Giovanni and Karma, Branislav, Corporate Finance and Economic Activity in the Euro Area: Structural Issues Report 2013 (June 26, 2013). ECB Occasional Paper No. 151. Available at SSRN: https://ssrn.com/abstract=2285524

Diego Rodriguez-Palenzuela (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
(49) 69-1344-6480 (Phone)
(49) 69-1344-6575 (Fax) (Fax)

Matthieu Darracq Paries

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+496913446631 (Phone)
+496913447604 (Fax)

Giacomo Carboni

European Central Bank(ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Annalisa Ferrando

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Petra Köhler Ulbrich

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Marie-Denise Zachary

National Bank of Belgium ( email )

Brussels, B-1000
Belgium

Felix Geiger

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Manuel Rupprecht

Münster University of Applied Sciences ( email )

Hüfferstraße 27
Münster, Münster 48149
Germany

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Taavi Raudsaar

Bank of Estonia ( email )

Estonia Building 13
15095 Tallinn
Estonia

Fergal McCann

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

Vasileios Georgakopoulos

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Carmen Martinez-Carrascal

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Juan Carluccio

Banque de France ( email )

Paris
France

Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Guillaume Horny

Banque de France ( email )

Paris
France

Paolo Finaldi Russo

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Demetris Kapatais

Central Bank of Cyprus ( email )

80 Kennedy Ave
1076 Nicosia
Cyprus

Ladislav Wintr

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Elaine Caruana Briffa

Central Bank of Malta ( email )

Valletta, 1060
Malta

Paul Metzemakers

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Koen van der Veer

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Walter Waschiczek

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna,
1010 Vienna, A-1011
Austria

Maria Luísa Alcoforado Farinha

Bank of Portugal ( email )

Av. Almirante Reis, 71
1150 Lisbon
Portugal
351-21-3128350 (Phone)

Uros Herman

Goethe University Frankfurt, House of Finance (HoF), Graduate School of Economics, Finance and Management (GSEFM), Students ( email )

Grüneburgplatz 1
Frankfurt
Germany

Alexander Karsay

National Bank of Slovakia ( email )

Imricha Karvasa 1
813 25 Bratislava
Slovakia

Petri Mäki-Fränti

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Francois Servant

Banque de France ( email )

Paris
France

Antonio De Socio

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Fiorella De Fiore

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Andreas Hertkorn

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Michele Lenza

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Giovanni Vitale

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344 6000 (Fax)

Branislav Karma

National Bank of Slovakia ( email )

Imricha Karvasa 1
813 25 Bratislava
Slovakia

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