Corporate Finance in the Euro Area - Including Background Material

156 Pages Posted: 28 Jun 2007

See all articles by Francesco Drudi

Francesco Drudi

European Central Bank (ECB)

Annalisa Ferrando

European Central Bank (ECB)

Petra Koehler

European Central Bank (ECB)

Yener Altunbas

University of Wales, Bangor

David Marques-Ibanez

European Central Bank (ECB)

Philippine Cour-Thimann

European Central Bank (ECB)

Elmar Stoess

Deutsche Bundesbank

Thomas Vlassopoulos

European Central Bank (ECB)

Carmen Martinez-Carrascal

Banco de España

Carmelo Salleo

Bank of Italy

Romain Perrard

Banque Centrale du Luxembourg

Anssi Rantala

Bank of Finland

Annie Sauve

Banque de France

Thomas Reininger

Österreichische Nationalbank

Angela Maddaloni

European Central Bank (ECB)

Stefano Borgioli

European Central Bank (ECB)

Peter Askjær Drejer

European Central Bank (ECB)

Franco F. Bevilacqua

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Multiple version iconThere are 2 versions of this paper

Date Written: June 2007

Abstract

This report analyses the financial position of non-financial enterprises in the euro area, in particular the amount of external financing, the choice between debt and equity and the composition and maturity structure of debt. It aims at identifying the main features of the euro area, as well as the peculiarities that depend on the country of origin and the sector of activity. Attention is also devoted to assessing whether a country's institutional features are correlated with different financial structures by firms. In light of the particular interest in the access of small and medium-sized enterprises (SMEs) to financing, the report also analyses how financing patterns differ across large, medium-sized and small enterprises. Finally, the report discusses the recent trends observed in the corporate finance landscape of the euro area over the past few years. Although it is still too early to pass final judgement, vast structural changes are underway that could have already influenced in a positive way in the availability of external funds for firms. All in all, a comprehensive understanding of corporate finance in the euro area is important from a monetary policy perspective, given its impact on the transmission mechanism and for productivity and economic growth. Moreover, such an understanding is also relevant from a financial stability perspective. A first assessment is now possible eight years into the third stage of Economic and Monetary Union (EMU), given that sufficient data have been accumulated during this period. This assessment is particularly important as the introduction of the single currency has had significant structural effects on the working of financial markets, increasing their size and liquidity, and fostering cross-border competition. The data available for this report generally cover the period 1995-2005, and the cut-off date for the statistics included is 10 March 2007.

Suggested Citation

Drudi, Francesco and Ferrando, Annalisa and Koehler, Petra and Altunbas, Yener and Marques-Ibanez, David and Cour-Thimann, Philippine and Stoess, Elmar and Vlassopoulos, Thomas and Martinez-Carrascal, Carmen and Salleo, Carmelo and Perrard, Romain and Rantala, Anssi and Sauve, Annie and Reininger, Thomas and Maddaloni, Angela and Borgioli, Stefano and Drejer, Peter Askjær and Bevilacqua, Franco F., Corporate Finance in the Euro Area - Including Background Material (June 2007). ECB Occasional Paper No. 63, Available at SSRN: https://ssrn.com/abstract=977354

Francesco Drudi (Contact Author)

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 Koehler

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Yener Altunbas

University of Wales, Bangor ( email )

Bangor, Wales LL57 2DG
United Kingdom

David Marques-Ibanez

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
49 6913 44 6460 (Phone)
49 6913 44 6460 (Fax)

Philippine Cour-Thimann

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Elmar Stoess

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
P.O.B. 10 06 02
D-60431 Frankfurt/Main
Germany

Thomas Vlassopoulos

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Carmen Martinez-Carrascal

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Carmelo Salleo

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Romain Perrard

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Anssi Rantala

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Annie Sauve

Banque de France ( email )

31 rue Croix des Petits Champs
Paris, 75049
France
33 1 42 92 39 67 (Phone)

Thomas Reininger

Österreichische Nationalbank ( email )

Wien 9, Otto Wagner Platz
Postfach 61
A-1011 Wien, 1090
Austria

Angela Maddaloni

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Stefano Borgioli

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Peter Askjær Drejer

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Franco F. Bevilacqua

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy

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