Front Matter Page

Western Hemisphere Department


  • Abstract

  • I. Introduction

  • II. Literature Review

  • III. Methodology

    • A. Estimation Strategy

    • B. Measures of Business Cycle Sensitivity and External Financial Dependency

    • C. Corporate and Macroeconomic Data

    • D. Descriptive Statistics

  • IV. Results

    • A. Baseline Estimation

    • B. Testing Asymmetric Effects of the Fiscal Stimulus

    • C. Industry/Sectoral Analysis

    • D. Expenditure vs Revenue Composition of Stimulus

  • V. Robustness Tests

    • A. ILO’s Alternative Measure of Discretionary Fiscal Stimulus

    • B. Measuring Fiscal Stimulus through Government Expenditure Forecast Errors

  • VI. Concluding Remarks

  • References

  • Tables

  • 1. Summary Statistics, Full Sample

  • 2. Summary Statistics, Advanced Economies

  • 3. Summary Statistics, Emerging Market Economies

  • 4. Results for All Countries for Profits

  • 5. Asymmetric effects of Fiscal Stimulus on Firms’ Profitability

  • 6a. Horse Race Results Per Sector for Profits

  • 6b. Horse Race Results Per Sector for Profits

  • 7. Expenditure-Based Fiscal Stimulus

  • Figures

  • 1. Box-Whisker Plots: Profit (EBITDA) to Asset Ratios

  • 2. Box-Whisker Plots: Growth Rate of Total Assets

  • 3. Fiscal Impulse, 2009

Fiscal Stimulus Impact on Firms' Profitability During the Global Financial Crisis
Author: Carolina Correa-Caro, Leandro Medina, Mr. Marcos Poplawski Ribeiro, and Mr. Bennett W Sutton