Corporate Financial Structure and Financial Stability

Mark Stone and E Davis (e_philip_davis@msn.com)

No 2004/124, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; banking crisis; changes range; currency crisis; OECD country; bank lending; crisis effect; external finance; trade credit; Corporate finance; financial instability; emerging market country; output changes range; real gross domestic product; bank crisis dynamics; GDP contraction; GDP flows data; currency crisis dummy; ratio rise; emerging market result; flows data; Emerging and frontier financial markets; Banking crises; Currency crises; Bank credit; Africa (search for similar items in EconPapers)
Pages: 49
Date: 2004-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (54)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=17362 (application/pdf)

Related works:
Journal Article: Corporate financial structure and financial stability (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2004/124

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi (amodi@imf.org).