European Parliament Library

Nonfinancial Firms in Latin America :, A Source of Vulnerability?, Maria Gonzalez

Abstract
We examine corporate sector vulnerabilities in Brazil, Chile, Colombia, Mexico and Peru. First, we identify stylized facts based on corporate financial indicators. Second, we assess vulnerability of individual firms to a sudden stop in financing through a probit model, using a panel of 18 countries in 2000-11. Results suggest that higher leverage and maturity exposures raise a firm’s probability to become exposed to a funding shock, while a larger firm size and buffers reduce it. Further, greater exchange rate flexibility can help mitigate corporate vulnerability. Identification of firms at risk through the model suggests that some vulnerabilities may be building in Latin America led by leverage, currency exposures and moderating buffers. These effects are partially offset, however, by a significant reduction in maturity exposures
Table Of Contents
Cover; Abstract; Contents; I. Introduction; Figures; 1. International Comparison of Corporate Performance; II. Some Stylized Facts about The Corporate Sector in Latin America; A. A Look at the Data and its Caveats; Tables; 1. LA5: Number of Firms, Assets and Debt Held; B. A View by Sector of Economic Activity; 2. International Comparison: Corporate Financial Indicators by Sector; C. A View by Individual Country; 3. LA5 Countries: Corporate Financial Indicators, 2005-11; III. Assessing Corporate Vulnerability from a Macro Perspective; A. Methodological Strategy; Basic Specification
Language
eng
Literary Form
non fiction
Note
November 2012
Physical Description
1 online resource (43 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781475595307

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
    Borrow
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
    Borrow
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
    Borrow