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Corporate Indebtedness of Non-Financial Corporations in Bulgaria

Author

Listed:
  • Yanko Hristozov

    (University of National and World Economy, Bulgaria)

Abstract

Corporate indebtedness is a particularly important indicator of the financial condition of enterprises, but its analysis is often underestimated, especially when it comes to its levels for entire economies. An example of this is Bulgaria, which does not analyze the indicator and does not prepare statistics on the issue. This is despite the signals in several consecutive EC reports of excessive levels of corporate indebtedness. The aim of the article is to analyze the corporate indebtedness at the macro level for the period 2008-2018 using absolute and relative indicators and looking for correlations with other economic indicators. The object of study are non-financial enterprises in Bulgaria. The research thesis is based on the assumption that the assessment of corporate indebtedness based only on absolute indicators is wrong and would distort the conclusions and opinions of the users interested in this information. Therefore, to assess corporate indebtedness, absolute indicators, absolute indicators per one enterprise and relative indicators must be combined and analyzed, and their relationships with other key macroeconomic and financial indicators should be identified.

Suggested Citation

  • Yanko Hristozov, 2020. "Corporate Indebtedness of Non-Financial Corporations in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 536-566, December.
    • Handle: RePEc:nwe:eajour:y:2020:i:4:p:536-566
    as

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    File URL: https://www.unwe.bg/doi/eajournal/2020.4/EA.2020.4.03.pdf
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    References listed on IDEAS

    as
    1. Ivailo Yankov, 2016. "Endogenous Elements of the Firm Indebtedness in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 126-140.
    2. Adachi-Sato, Meg & Vithessonthi, Chaiporn, 2019. "Corporate debt maturity and future firm performance volatility," International Review of Economics & Finance, Elsevier, vol. 60(C), pages 216-237.
    3. Cole, Rebel, 2010. "Bank credit, trade credit or no credit: Evidence from the Surveys of Small Business Finances," MPRA Paper 24689, University Library of Munich, Germany, revised 15 Mar 2010.
    4. Dimitar Nenkov, 2016. "Growth Policy and Value Creation in Companies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 36-65.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Debt; Indebtedness; Intercompany Indebtedness;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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