 Assessment of Corporate Sector Value and Vulnerability: Links to Exchange Rtae and Financial CrisesD.F. Gray Working Papers from World Bank - Technical Papers Abstract: This paper presents an innovative yet practical framework to assess corporate sector vulnerability and the links to exchange rates and financial crises that bridges the gap between corporate finance and macroeconomic analysis. This framework missing describing how changes in aggregate value of the corporate sector are interrelated with exchange rate crises, financial crises and associated fiscal costs of bank recapitalization. The factors that can make the corporate sector particularly vulnerable include both sector-specific characteristics (leverage, composition of debt, maturity of debt, hard currency profits, etc.) and characteristics of the current account adjustment process that feed back on corporate balance sheets. The framework has multiple applications. It can help policy makers and investors understand past crises and assess risks of future crises. It can also help improve surveillance as well as improve policy design at the macroeconomic, financial and corporate sector levels. Keywords: EXCHANGE RATE; FINANCIAL CRISIS; MACROECONOMICS; FINANCIAL MARKET (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fth:wobate:455 Access Statistics for this paper More papers in Working Papers from World Bank - Technical Papers THE WORLD BANK; 1818 H STREET, N.W. WASHINGTON, D.C. 20433, U.S.A.. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.