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Fiscal Stimulus Impact on Firms' Profitability During the Global Financial Crisis

Using financial statement data from the Thomson Reuter’s Worldscope database for 22,333 non-financial firms in 52 advanced and emerging economies, this paper examines how fiscal stimulus (i.e., changes in structural deficit) interacted with sectoral business cycle sensitivity affected corporate prof...

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Bibliographic Details
Main Author: Correa-Caro, Carolina
Other Authors: Medina, Leandro, Poplawski Ribeiro, Marcos, Sutton, Bennett
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:IMF Working Papers
Subjects:
Business Cycles
Interest Rates
Public Finance & Taxation
Financial Services
National Deficit Surplus
Fiscal Policy
National Government Expenditures And Related Policies: General
Expenditure
Cycles
Multiple Or Simultaneous Equation Models: Models With Panel Data
Banks And Banking
Economic Growth
Expenditures, Public
Macroeconomics
Banking
Fiscal Stimulus
Business Fluctuations
Interest Rates: Determination, Term Structure, And Effects
Prices, Business Fluctuations, And Cycles: General (includes Measurement And Data)
Public Finance
Central Bank Policy Rate
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Using financial statement data from the Thomson Reuter’s Worldscope database for 22,333 non-financial firms in 52 advanced and emerging economies, this paper examines how fiscal stimulus (i.e., changes in structural deficit) interacted with sectoral business cycle sensitivity affected corporate profitability during the recovery period of the global financial crisis (GFC). Using cross-sectional analyses, our findings indicate that corporate profitability improved significantly after the GFC fiscal stimulus, especially in manufacturing, utilities and retail sectors. Firm size and leverage are also found to be significant in explaining changes in corporate profitability
Physical Description:38 pages
ISBN:9781484380659

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