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Corporate vulnerabilities as reported by firms in the SAFE

Author

Listed:
  • Attolini, Carmela
  • Ferrando, Annalisa
  • Rariga, Judit

Abstract

Historically, the financial vulnerability indicator based on the Survey on the Access to Finance of Enterprises (SAFE) evolves broadly in line with bankruptcies and other insolvency measures for firms in the euro area. The current rise in vulnerabilities identified in the SAFE is driven mostly by firms in industry, construction and trade and by large firms rather than by small and medium-sized enterprises (SMEs). Increasing interest expenses are important in explaining the likelihood of firms becoming vulnerable. Balance sheet data on firms in the SAFE confirm that corporate vulnerabilities have implications for their investment rate and employment growth. This provides further insights into the transmission of monetary policy to economic activity. JEL Classification: D22, G33, E52

Suggested Citation

  • Attolini, Carmela & Ferrando, Annalisa & Rariga, Judit, 2024. "Corporate vulnerabilities as reported by firms in the SAFE," Economic Bulletin Boxes, European Central Bank, vol. 1.
    • Handle: RePEc:ecb:ecbbox:2024:0001:5
    Note: 235236
    as

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    More about this item

    Keywords

    firm survey data; investment; Vulnerability;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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