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Trend in the financial structure and results of firms in 2006


  • Fabienne Verduyn

    (National Bank of Belgium, Microeconomic Information Department)

  • David Vivet

    (National Bank of Belgium, Microeconomic Information Department)


In 2006, growth of total value added generated by Belgian non-financial corporations accelerated to reach 6.4 p.c. At the same time, operating costs rose by 5.5 p.c. So, for the fourth year in a row, value added rose faster than operating costs. As a consequence, net operating profit saw a further noticeable increase (+9.2 p.c.), reaching a total of nearly 33 billion euro. After taking into account the other elements of the profit and loss account, non-financial corporations generated an overall net profit after tax of 43 billion euro, representing a new year-on-year increase. The financial position of firms also continued to improve in 2006. Globalised as well as median measures confirm the exceptional levels of profitability, solvency and liquidity that have been reached today. Finally, the article focuses on the effects of the corporation tax reforms of 2003 and 2005. Although an increase in revenue from corporate taxation can be noted from 2002 onwards, the tax burden has declined for non-financial corporations as a result of these reforms. The most recent reform, which introduced a notional interest deduction from the 2007 tax year onwards, has had a structural impact on the financial behavior of corporations. Share issues grew by more than 250 p.c. to reach a record level of 114 billion euro. Large companies, in particular, resorted to techniques to optimise the impact of the tax deduction. Their rectified equity capital, which is used as a base to calculate the size of the tax deduction, increased by 30 p.c. and their payment of dividends decreased by 20 p.c. in 2006.

Suggested Citation

  • Fabienne Verduyn & David Vivet, 2007. "Trend in the financial structure and results of firms in 2006," Economic Review, National Bank of Belgium, issue iii, pages 43-60, December.
  • Handle: RePEc:nbb:ecrart:y:2007:m:december:i:iii:p:43-60

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    References listed on IDEAS

    1. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
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    More about this item


    firms results; financial structure; corporate tax; sectoral analysis;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General


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