Normal view MARC view ISBD view

A Closer Look at Sectoral Financial Linkages in Brazil I [electronic resource] : Corporations' Financial Statements / Izabela Karpowicz.

By: Karpowicz, Izabela.
Material type: materialTypeLabelBookSeries: IMF Working Papers: Publisher: Washington, D.C. : International Monetary Fund, 2016Description: 1 online resource (30 p.).ISBN: 1513536885 :.ISSN: 1018-5941.Subject(s): Balance Sheet Analysis | DSGE Bayesian Estimation | Emerging Economies | International Financial Markets | Western Hemisphere | BrazilAdditional physical formats: Print Version:: A Closer Look at Sectoral Financial Linkages in Brazil I : Corporations' Financial Statements.Online resources: IMF e-Library | IMF Book Store Abstract: Understanding the interplay between firms' balance sheets and the macro-economic environment is important for understanding of the Brazilian economy. A close examination of developments in the nonfinancial corporate sector up to the early 2015 reveals weak equity growth, declining profitability, and rising leverage. The empirical work suggests that adverse shocks to financial variables lead to weaker real GDP growth in Brazil through their effect on corporate leverage, borrowing costs, and default frequencies. An estimation based on a DSGE model with financial frictions indicates that the recent economic downturn in Brazil is largely driven by a decrease in total factor productivity and by negative financial shocks.
Tags from this library: No tags from this library for this title. Log in to add tags.
    average rating: 0.0 (0 votes)
No physical items for this record

Understanding the interplay between firms' balance sheets and the macro-economic environment is important for understanding of the Brazilian economy. A close examination of developments in the nonfinancial corporate sector up to the early 2015 reveals weak equity growth, declining profitability, and rising leverage. The empirical work suggests that adverse shocks to financial variables lead to weaker real GDP growth in Brazil through their effect on corporate leverage, borrowing costs, and default frequencies. An estimation based on a DSGE model with financial frictions indicates that the recent economic downturn in Brazil is largely driven by a decrease in total factor productivity and by negative financial shocks.

Description based on print version record.

There are no comments for this item.

Log in to your account to post a comment.

Ⓒ 2020 Dedan Kimathi University of Technology

Library