Rodriguez-Palenzuela, Diego Darracq-Pariès, Matthieu Carboni, Giacomo Ferrando, Annalisa Ulbrich, Petra Köhler Zachary, Marie-Denise Geiger, Felix Rupprecht, Manuel Raudsaar, Taavi McCann, Fergal Georgakopoulos, Vasileios Martínez-Carrascal, Carmen Carluccio, Juan Horny, Guillaume Russo, Paolo Finaldi Kapatais, Demetris Wintr, Ladislav Briffa, Elaine Caruana Metzemakers, Paul van der Veer, Koen Waschiczek, Walter Farinha, Luisa Herman, Uroš Karšay, Alexander Mäki-Fränti, Petri Servant, François Socio, Antonio De Fiore, Fiorella De Hertkorn, Andreas Lenza, Michele Vitale, Giovanni Karmazin, Branislav
This report analyses and reviews the corporate finance structure of non-financial corporations (NFCs) in the euro area, including how they interact with the macroeconomic environment. Special emphasis is placed on the crisis that began in 2007-08, thus underlining the relevance of financing and credit conditions to investment and economic activity in turbulent times. When approaching such a broad topic, a number of key questions arise. How did the corporate sector’s capital structure, internal and external financing sources, and its tendency to leverage, evolve in the euro area over the last decade and in the run-up to the financial crisis in particular? Did these developments contribute to and/or exacerbate the financial crisis? Did the corporate sector’s response to various shocks and vulnerabilities support or encumber the euro area economy, both during the financial crisis and in its aftermath?