Financial crisis effects on the firm's debt level: evidence from G-7 countries

The paper analyzes the effects of the financial crisis on firms’ debt level in G-7 countries. The analysis is based on a sample of non-financial firms listed in G-7 countries in the period 1994-2013 distinguishing between pre-crisis period and crisis period. Two are the main findings of the analysis: first, during the analysis period, the average debt level of the firms in all countries converges to an “approximate range” that is slightly different between countries; second, the behaviour about debt level is different between firms in G-7 countries in the crisis period respect the pre-crisis period. While firms in European countries decrease the debt level, firms in USA, Canada and Japan increase it.