| By: |
Francesco Drudi (Capital markets and Financial Structure Division, Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.);
Annalisa Ferrando (Capital markets and Financial Structure Division, Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.);
Petra Köhler-Ulbrich (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.);
David Marqués Ibañez (Capital markets and Financial Structure Division, Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.);
Philippine Cour-Thimann (Capital markets and Financial Structure Division, Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.);
Vanessa Baugnet;
Elmar Stoess;
Thomas Vlassopoulos;
Carmen Martínez-Carrascal;
Katia Tombois;
Peter Mc.Goldrick;
Carmelo Salleo;
Romain Perrard;
Maarten Hendrikx;
Walter Waschiczek;
Paula Antão;
Anssi Rantala |
| Abstract: |
This report analyses the financial position of non-financial enterprises in
the euro area, in particular the amount of external financing, the choice
between debt and equity and the composition and maturity structure of debt. It
aims at identifying the main features of the euro area, as well as the
peculiarities that depend on the country of origin and the sector of activity.
Attention is also devoted to assessing whether a country’s institutional
eatures are correlated with different financial structures by firms. In light
of the particular interest in the access of small and medium-sized enterprises
(SMEs) to financing, the report also analyses how financing patterns differ
across large, medium-sized and small enterprises. Finally, the report
discusses the recent trends observed in the corporate finance landscape of the
euro area over the past few years. Although it is still too early to pass
final judgement, vast structural changes are underway that could have already
influenced in a positive way in the availability of external funds for firms.
All in all, a comprehensive understanding of corporate finance in the euro
area is important from a monetary policy perspective, given its impact on the
transmission mechanism and for productivity and economic growth. Moreover,
such an understanding is also relevant from a financial stability perspective.
A first assessment is now possible eight years into the third stage of
Economic and Monetary Union (EMU), given that sufficient data have been
accumulated during this period. This assessment is particularly important as
the introduction of the single currency has had significant structural effects
on the working of financial markets, increasing their size and liquidity, and
fostering cross-border competition. The data available for this report
generally cover the period 1995-2005, and the cut-off date for the statistics
included is 10 March 2007. |
| Date: |
2007–06 |
| URL: |
http://d.repec.org/n?u=RePEc:ecb:ecbops:20070063&r=fmk |