The corporate saving glut

Giacomo Saibene

Journal of Macroeconomics, 2019, vol. 62, issue C

Abstract: Since the 2000s, the non-financial corporate sector moved from net borrower to net lender in many advanced economies - what has been labelled the corporate saving glut. Using data on U.S. listed firms, I document that the firms behind this widespread pattern are the largest corporations. The glut is the consequence of a constant profit share, relative to total corporate assets, which is larger than the sum of a decreasing investment share and a small and constant dividend share. In addition, I find no explanation able to empirically account for this pervasive phenomenon: neither deleveraging, nor increased uncertainty, nor increased market power are meaningfully correlated with the emergence of the glut at the firm-level.

Keywords: Corporate saving glut; Net lending; Firm saving (search for similar items in EconPapers)
JEL-codes: E22 E44 G01 G21 G23 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:62:y:2019:i:c:s0164070417304950

DOI: 10.1016/j.jmacro.2018.11.004

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