Corporate Debt Structure and Economic Recoveries
Urszula Szczerbowicz () and
Fabien Tripier ()
Working papers from Banque de France
This paper analyzes the business cycle behavior of the corporate debt structure and its interaction with economic recovery. The debt structure is measured as the share of bonds in the total credit to non-financial corporations for a quarterly panel of countries over the period 1989-2013. We first show that the substitution of loans for bonds in recoveries is a regular property of business cycles. Secondly, we provide evidence that economies with high bond share and important bond-loan substitution recover from the recessions faster. This identified link between corporate debt structure and business cycles is robust to the inclusion of traditional factors which shape recessions and recovery such as the size and the quality of financial markets, the occurrence of bank crisis, the dynamics of credit, and the distribution of firm size.
Keywords: Corporate Debt; Bonds Markets; Banking; Business Cycles; Recovery; Financial Frictions. (search for similar items in EconPapers)
JEL-codes: E3 E4 G1 G2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... documents/wp-646.pdf (application/pdf)
Journal Article: Corporate debt structure and economic recoveries (2018)
Working Paper: Corporate Debt Structure and Economic Recoveries (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:646
Access Statistics for this paper
More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().