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The authors are grateful to Sergei Antoshin, Theo Bikoi, Sophia Chen, Martin Čihák, Mai Dao Chi, Joerg Decressin, Enrica Detragiache, Ivo Krznar, Aiko Mineshima, Delia Velculescu, and Claudio Visconti for helpful comments, and to Udaibir Das for his support of this research. The paper covers the period 2010–17, before the coronavirus pandemic. We are also thankful to seminar participants at the French Treasury, the Banque de France, and the IMF EUR and MCM departments. The paper builds on earlier work for the France 2018 Article IV Selected Issues Paper, “Corporate Debt in France,” IMF Country Report No. 18/244, and the France FSAP (Technical Note Country Report No. 19/321).
See also recent issues of the Banque de France’s Assessment of Risks to the French Financial System: https://publications.banque-france.fr/en/liste-chronologique/assessment-risks-french-financial-system.
Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, the UK, and the United States.
National accounts and firm balance sheets report debt maturity on a remaining maturity basis, while corporate bond market data provide information on maturity at origination.
The corporate debt of our sample of non-financial corporations accounts for between 30 percent and 50 percent of total non-financial corporation debt at the country level in eight out of 10 countries in our sample. In the two remaining countries (Italy and the Netherlands), it accounts for between 15 percent and 20 percent of total non-financial corporations.
Arnold and others (2013) develop an intertemporal structural model and show that firms with growth options tend to have higher costs of debt than firms with real fixed assets.
Please note that data on intercompany loans are not available for Canada, Japan, and the US on the OECD website. Data on intercompany loans for Canada come from the Bank of Canada.
Note that this consolidated debt only nets out resident intercompany loans, and because Belgium and the Netherlands are home to multinationals, their consolidated debt may still include a large amount of cross-border intercompany loans.
The figure for Belgium is driven by the bond issuance of a single firm.
Please note that data for Canada and Japan are not available on the OECD website.