The Financial Wealth of Corporations: A First Look at Sectoral Balance Sheet Data

January 26, 2016

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Format: Chicago

Yuko Hashimoto, and Noriaki Kinoshita. The Financial Wealth of Corporations: A First Look at Sectoral Balance Sheet Data, (USA: International Monetary Fund, 2016) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyzes the nonfinancial corporation (NFC) sector’s financial balance sheets using data available from the OECD. In our sample of 20 advanced economies, corporate debt in percent of GDP—a frequently used indicator in the context of corporate balance sheet adjustments—has remained high since the global financial crisis, with significant differences in the level and the trend between the high-debt and low-debt groups. Looking at financial balance sheets more broadly, including net financial wealth, the NFC sector’s balance sheet conditions have improved recently, particularly reflecting accumulation of corporate cash and valuation gains on financial assets. Longer time series and more granular data for Japan, which has been experiencing a prolonged period of balance sheet adjustments, indicate that a continued strengthening of balance sheets might occur even after debt levels are reduced.

Subject: Business enterprises, Currencies, Economic sectors, Financial crises, Financial institutions, Financial statements, Global financial crisis of 2008-2009, Money, Public financial management (PFM), Stocks

Keywords: Balance sheet adjustment, Balance sheet condition, Balance sheet data, Business enterprises, Cash, Cash holding, Currencies, Debt, Economy, Financial asset accumulation, Financial balance sheet, Financial statements, Global, Global financial crisis of 2008-2009, Net financial wealth, NFC sector, Nonfinancial corporation, Stocks, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/011
Stock No:

WPIEA2016011
ISBN:

9781484395073
ISSN:

1018-5941

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