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Rapidly rising corporate debt: are firms now vulnerable to an economic slowdown?

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Abstract

The buildup of debt in the late 1990s has raised concerns about the U.S. nonfinancial corporate sector's health and its vulnerability to economic downturns. An analysis of the sector suggests that while small firms are experiencing some weakness, corporations as a group are in good financial shape.

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  • Gijoon Hong & Carol L. Osler, 2000. "Rapidly rising corporate debt: are firms now vulnerable to an economic slowdown?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 6(Jun).
    • Handle: RePEc:fip:fednci:y:2000:i:jun:n:v.6no.7
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    References listed on IDEAS

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    1. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    2. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
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    Cited by:

    1. Edward I. Altman, 2013. "Predicting financial distress of companies: revisiting the Z-Score and ZETA® models," Chapters, in: Adrian R. Bell & Chris Brooks & Marcel Prokopczuk (ed.), Handbook of Research Methods and Applications in Empirical Finance, chapter 17, pages 428-456, Edward Elgar Publishing.
    2. Pu Shen, 2003. "Why has the nonfinancial commercial paper market shrunk recently?," Economic Review, Federal Reserve Bank of Kansas City, vol. 88(Q I), pages 55-76.
    3. Orhan Erem Atesagaoglu, 2012. "Taxes, Regulations And The Corporate Debt Market," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 979-1004, August.

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    Keywords

    Debt; Corporations - Finance;

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