What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses
This paper analyzes annual accounting data for a sample of 5,000 publicly traded manufacturing firms from Germany, France, Italy, Japan, and the United Kingdom. The analysis uses data from 1997 to 2011 and finds an increasing trend of excess saving...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/08/18109370/causes-growing-trend-excess-savings-corporate-sector-developed-countries-empirical-analysis-three-hypotheses http://hdl.handle.net/10986/16004 |
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okr-10986-160042021-04-23T14:03:27Z What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses Brufman, Leandro Martinez, Lisana Pérez Artica, Rodrigo ACCESS TO CAPITAL AGENCY COST AGGREGATE DEMAND ASSETS RATIO BALANCE SHEET BALANCE SHEETS BANK DEPOSITS BANKING SYSTEM BUSINESS CYCLE BUSINESS CYCLES BUSINESS ENVIRONMENT CAPITAL FORMATION CAPITAL STRUCTURE CASH DIVIDENDS CASH FLOW CASH FLOWS CASH HOLDINGS CORPORATE FINANCE CORPORATE INVESTMENT CORPORATE SAVINGS CREDIT CONSTRAINTS CREDIT CRUNCH CREDIT RATIONING DEBT DEBT REDUCTION DEVELOPED COUNTRIES DEVELOPMENT POLICY DIVERSIFICATION DIVIDEND DIVIDEND POLICY DIVIDENDS DUMMY VARIABLE EARNINGS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC OUTLOOK EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUITY MARKET EQUITY MARKET DEVELOPMENT EXPENDITURES FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INTERMEDIATION FINANCIAL MANAGEMENT FINANCIAL POLICIES FINANCIAL STUDIES FINANCIAL SYSTEM GROWTH OPPORTUNITIES GROWTH POTENTIAL GROWTH RATE HOLDING HOLDINGS INCOME INDEBTEDNESS INSURANCE INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT BEHAVIOR INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS LIQUIDITY LIQUIDITY MANAGEMENT MACROECONOMIC ENVIRONMENT MACROECONOMIC UNCERTAINTY MARKET COMPETITION MARKET DEVELOPMENT MERGERS NATIONAL ACCOUNTING NATIONAL INVESTMENT PRIVATE INVESTMENT RECESSION RETURN RETURN ON ASSETS SAFE ASSETS SALES GROWTH SALES_GROWTH SAVINGS SHORT-TERM ASSETS SHORT-TERM DEBT STOCKS TAX TAX BENEFITS TOTAL_DEBT TREASURIES TREASURY VOLATILE ENVIRONMENT VOLATILITY This paper analyzes annual accounting data for a sample of 5,000 publicly traded manufacturing firms from Germany, France, Italy, Japan, and the United Kingdom. The analysis uses data from 1997 to 2011 and finds an increasing trend of excess savings (defined as the difference between gross saving and capital formation) and a gradual decline of gross capital formation. This trend is accompanied by a steady deleveraging process and a decrease in the share of operating assets in total assets. This process is more acute among the more credit constrained, the more volatile, and the less dynamic firms. 2013-10-02T13:49:45Z 2013-10-02T13:49:45Z 2013-08 http://documents.worldbank.org/curated/en/2013/08/18109370/causes-growing-trend-excess-savings-corporate-sector-developed-countries-empirical-analysis-three-hypotheses http://hdl.handle.net/10986/16004 English en_US Policy Research Working Paper;No. 6571 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Europe and Central Asia France Germany Italy Japan United Kingdom |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO CAPITAL AGENCY COST AGGREGATE DEMAND ASSETS RATIO BALANCE SHEET BALANCE SHEETS BANK DEPOSITS BANKING SYSTEM BUSINESS CYCLE BUSINESS CYCLES BUSINESS ENVIRONMENT CAPITAL FORMATION CAPITAL STRUCTURE CASH DIVIDENDS CASH FLOW CASH FLOWS CASH HOLDINGS CORPORATE FINANCE CORPORATE INVESTMENT CORPORATE SAVINGS CREDIT CONSTRAINTS CREDIT CRUNCH CREDIT RATIONING DEBT DEBT REDUCTION DEVELOPED COUNTRIES DEVELOPMENT POLICY DIVERSIFICATION DIVIDEND DIVIDEND POLICY DIVIDENDS DUMMY VARIABLE EARNINGS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC OUTLOOK EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUITY MARKET EQUITY MARKET DEVELOPMENT EXPENDITURES FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INTERMEDIATION FINANCIAL MANAGEMENT FINANCIAL POLICIES FINANCIAL STUDIES FINANCIAL SYSTEM GROWTH OPPORTUNITIES GROWTH POTENTIAL GROWTH RATE HOLDING HOLDINGS INCOME INDEBTEDNESS INSURANCE INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT BEHAVIOR INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS LIQUIDITY LIQUIDITY MANAGEMENT MACROECONOMIC ENVIRONMENT MACROECONOMIC UNCERTAINTY MARKET COMPETITION MARKET DEVELOPMENT MERGERS NATIONAL ACCOUNTING NATIONAL INVESTMENT PRIVATE INVESTMENT RECESSION RETURN RETURN ON ASSETS SAFE ASSETS SALES GROWTH SALES_GROWTH SAVINGS SHORT-TERM ASSETS SHORT-TERM DEBT STOCKS TAX TAX BENEFITS TOTAL_DEBT TREASURIES TREASURY VOLATILE ENVIRONMENT VOLATILITY |
| spellingShingle |
ACCESS TO CAPITAL AGENCY COST AGGREGATE DEMAND ASSETS RATIO BALANCE SHEET BALANCE SHEETS BANK DEPOSITS BANKING SYSTEM BUSINESS CYCLE BUSINESS CYCLES BUSINESS ENVIRONMENT CAPITAL FORMATION CAPITAL STRUCTURE CASH DIVIDENDS CASH FLOW CASH FLOWS CASH HOLDINGS CORPORATE FINANCE CORPORATE INVESTMENT CORPORATE SAVINGS CREDIT CONSTRAINTS CREDIT CRUNCH CREDIT RATIONING DEBT DEBT REDUCTION DEVELOPED COUNTRIES DEVELOPMENT POLICY DIVERSIFICATION DIVIDEND DIVIDEND POLICY DIVIDENDS DUMMY VARIABLE EARNINGS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC OUTLOOK EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUITY MARKET EQUITY MARKET DEVELOPMENT EXPENDITURES FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INTERMEDIATION FINANCIAL MANAGEMENT FINANCIAL POLICIES FINANCIAL STUDIES FINANCIAL SYSTEM GROWTH OPPORTUNITIES GROWTH POTENTIAL GROWTH RATE HOLDING HOLDINGS INCOME INDEBTEDNESS INSURANCE INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT BEHAVIOR INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS LIQUIDITY LIQUIDITY MANAGEMENT MACROECONOMIC ENVIRONMENT MACROECONOMIC UNCERTAINTY MARKET COMPETITION MARKET DEVELOPMENT MERGERS NATIONAL ACCOUNTING NATIONAL INVESTMENT PRIVATE INVESTMENT RECESSION RETURN RETURN ON ASSETS SAFE ASSETS SALES GROWTH SALES_GROWTH SAVINGS SHORT-TERM ASSETS SHORT-TERM DEBT STOCKS TAX TAX BENEFITS TOTAL_DEBT TREASURIES TREASURY VOLATILE ENVIRONMENT VOLATILITY Brufman, Leandro Martinez, Lisana Pérez Artica, Rodrigo What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses |
| geographic_facet |
East Asia and Pacific Europe and Central Asia France Germany Italy Japan United Kingdom |
| relation |
Policy Research Working Paper;No. 6571 |
| description |
This paper analyzes annual accounting
data for a sample of 5,000 publicly traded manufacturing
firms from Germany, France, Italy, Japan, and the United
Kingdom. The analysis uses data from 1997 to 2011 and finds
an increasing trend of excess savings (defined as the
difference between gross saving and capital formation) and a
gradual decline of gross capital formation. This trend is
accompanied by a steady deleveraging process and a decrease
in the share of operating assets in total assets. This
process is more acute among the more credit constrained, the
more volatile, and the less dynamic firms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Brufman, Leandro Martinez, Lisana Pérez Artica, Rodrigo |
| author_facet |
Brufman, Leandro Martinez, Lisana Pérez Artica, Rodrigo |
| author_sort |
Brufman, Leandro |
| title |
What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses |
| title_short |
What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses |
| title_full |
What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses |
| title_fullStr |
What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses |
| title_full_unstemmed |
What Are the Causes of the Growing Trend of Excess Savings of the Corporate Sector in Developed Countries? An Empirical Analysis of Three Hypotheses |
| title_sort |
what are the causes of the growing trend of excess savings of the corporate sector in developed countries? an empirical analysis of three hypotheses |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/08/18109370/causes-growing-trend-excess-savings-corporate-sector-developed-countries-empirical-analysis-three-hypotheses http://hdl.handle.net/10986/16004 |
| _version_ |
1764431999499501568 |