Assessment of corporate sector value and vulnerability : rate and financial crises links to exchange

This paper presents an innovative yet practical framework to assess corporate sector vulnerability and the links to exchange rates and financial crises that bridges the gap between corporate finance and macroeconomic analysis. This framework provides a " missing link " describing how chang...

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Bibliographic Details
Main Author: Gray, Dale F
Corporate Author: Banco Mundial
Format: Book
Published: Washington, D.C. World Bank 1999
Series:World Bank technical paper no. 455
Subjects:
Description
Summary:This paper presents an innovative yet practical framework to assess corporate sector vulnerability and the links to exchange rates and financial crises that bridges the gap between corporate finance and macroeconomic analysis. This framework provides a " missing link " describing how changes in aggregate value of the corporate sector are interrelated with exchange rate crises, financial crises, and associated fiscal costs of bank recapitalization. The factors that can make the corporate sector particularly vulnerable include both sector-specific characteristics (leverage, composition of debt, maturity of debt, hard currency profits, etc.) and characteristics of the current account adjustment process that feed back on corporate balance sheets. The framework has multiple applications. It can help policy makers and investors understand past crises and assess risks of future crises. It can also help improve surveillance as well as improve policy design at the macroeconomic, financial, and corporate sector levels.
Physical Description:vii, 44 p. : il.
Bibliography:Incluye bibliografía
ISBN:0-8213-4603-2
ISSN:0253-7494