Fiscal Stimulus Impact on Firms' Profitability During the Global Financial Crisis
Download or Read eBook Fiscal Stimulus Impact on Firms' Profitability During the Global Financial Crisis PDF written by Carolina Correa-Caro and published by International Monetary Fund. This book was released on 2018-11-28 with total page 38 pages. Available in PDF, EPUB and Kindle.
Author | : Carolina Correa-Caro |
Publisher | : International Monetary Fund |
Total Pages | : 38 |
Release | : 2018-11-28 |
ISBN-10 | : 9781484380659 |
ISBN-13 | : 1484380657 |
Rating | : 4/5 (59 Downloads) |
Book Synopsis Fiscal Stimulus Impact on Firms' Profitability During the Global Financial Crisis by : Carolina Correa-Caro
Book excerpt: 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.