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Trend in the financial structure and results of firms in 2008

Author

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  • David Vivet

    (National Bank of Belgium, Microeconomic Information Department)

Abstract

The article looks at the financial situation of non-financial corporations in Belgium over the period running from 1 January to 31 December 2008. Because of the contrasting economic trends during that period, the analysis is somewhat blurred. Nevertheless, the data collected still give a good idea of the resistance capacity of firms at the beginning of the recession. For the year 2008 as a whole, growth of the total value added generated by Belgian non-financial corporations amounted to 1.8 p.c. (in current prices), well down on previous years. Meanwhile, operating costs grew more quickly than value added, resulting in a drop in operating profit for the first time since 2001. As far as the financial position of firms is concerned, there was a widespread decline in profitability and repayment ability in 2008, due to the economic downturn. On the other hand, solvency ratios continued to rise as a result of newly-invested capital. Finally, a distribution analysis shows that a large proportion of firms are in an unfavourable situation and that the dispersion of ratios has widened over the last ten years.

Suggested Citation

  • David Vivet, 2009. "Trend in the financial structure and results of firms in 2008," Economic Review, National Bank of Belgium, issue iv, pages 59-81, December.
    • Handle: RePEc:nbb:ecrart:y:2009:m:december:i:iv:p:59-81
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    File URL: https://www.nbb.be/en/articles/trend-financial-structure-and-results-firms-2008-1
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    More about this item

    Keywords

    firms’ results; financial structure; sectoral analysis; distribution analysis;
    All these keywords.

    JEL classification:

    • D39 - Microeconomics - - Distribution - - - Other
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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