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-PalenzuelaEuropean Central Bank (ECB)
European Central Bank (ECB)
European Central Bank(ECB)
European Central Bank (ECB)
European Central Bank (ECB)
National Bank of Belgium
Deutsche Bundesbank
Münster University of Applied Sciences; Deutsche Bundesbank
Bank of Estonia
Central Bank of Ireland
Bank of Greece
Banco de España
Banque de France; Paris School of Economics
Banque de France
Bank of Italy
Central Bank of Cyprus
Banque Centrale du Luxembourg
Central Bank of Malta
De Nederlandsche Bank
De Nederlandsche Bank
Oesterreichische Nationalbank (OeNB)
Bank of Portugal
Goethe University Frankfurt, House of Finance (HoF), Graduate School of Economics, Finance and Management (GSEFM), Students
National Bank of Slovakia
Bank of Finland
Banque de France
Bank of Italy
Bank for International Settlements (BIS) - Monetary and Economic Department
European Central Bank (ECB)
European Central Bank (ECB)
European Central Bank (ECB)
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:
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