Financing and Risks of French Firms

20 Pages Posted: 13 Aug 2009

See all articles by Yingbin Xiao

Yingbin Xiao

International Monetary Fund (IMF)

Date Written: February 2008

Abstract

This paper documents the role of capital markets in financing nonfinancial French firms since the adoption of the euro and analyzes its implications for risk using a structural model of credit risk. The analysis suggests that market financing has played a more important role in financing French firms than the euro area as a whole. The credit risk of French firms was reduced substantially between 2002 and the first half of 2007. The subsequent global turmoil has had a larger impact on smaller firms than larger ones.

Keywords: financing, corporate, credit risk, French firms

JEL Classification: G32, G21, G23

Suggested Citation

Xiao, Yingbin, Financing and Risks of French Firms (February 2008). Available at SSRN: https://ssrn.com/abstract=1435088 or http://dx.doi.org/10.2139/ssrn.1435088

Yingbin Xiao (Contact Author)

International Monetary Fund (IMF) ( email )

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