The Financial Wealth of Corporations: A First Look at Sectoral Balance Sheet Data

30 Pages Posted: 28 Mar 2016

See all articles by Yuko Hashimoto

Yuko Hashimoto

International Monetary Fund (IMF)

Noriaki Kinoshita

International Monetary Fund (IMF)

Date Written: January 2016

Abstract

This paper analyzes the nonfinancial corporation (NFC) sector's financial balance sheets using data available from the OECD. In our sample of 20 advanced economies, corporate debt in percent of GDP-a frequently used indicator in the context of corporate balance sheet adjustments-has remained high since the global financial crisis, with significant differences in the level and the trend between the high-debt and low-debt groups. Looking at financial balance sheets more broadly, including net financial wealth, the NFC sector's balance sheet conditions have improved recently, particularly reflecting accumulation of corporate cash and valuation gains on financial assets. Longer time series and more granular data for Japan, which has been experiencing a prolonged period of balance sheet adjustments, indicate that a continued strengthening of balance sheets might occur even after debt levels are reduced.

Keywords: Nonfinancial corporation, financial balance sheet, net financial wealth, balance sheet, equity, debt, balance sheets, stock, General, Methodology for Collecting, Estimating, and Organizing Macroeconomic Data, Globalization: Macroeconomic Impacts, All Countries,

JEL Classification: B40, C82, E01, F62

Suggested Citation

Hashimoto, Yuko and Kinoshita, Noriaki, The Financial Wealth of Corporations: A First Look at Sectoral Balance Sheet Data (January 2016). IMF Working Paper No. 16/11, Available at SSRN: https://ssrn.com/abstract=2754916

Yuko Hashimoto (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Noriaki Kinoshita

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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