NON-FINANCIAL CORPORATIONS IN US ECONOMY: PERFORMANCE COMPOSITION

Abstract

The capital structure of nonfinancial corporations is an important determinant of their overall financial performance. In recent years, the capital structure of US nonfinancial corporations has evolved significantly, due to a number of factors, including globalization, technological change, and regulatory changes.

This paper examines capital structure of US nonfinancial corporations over the last decade. Visualizing US net savings dynamics helps to explain identified alerting trends in net savings structure. Global change in trends is highlighted.

It also finds that the negative net worth of the US non-financial companies sector is a concerning trend, and that it is important to address the factors that have contributed to this trend in order to strengthen the non-financial companies sector and protect the long-term health of the economy.

The paper also identifies a number of general and specific trends that have influenced the formation of multinational corporation (MNC) capital structures over the last decade. It argues that the capital structure of an MNC can have a significant impact on its financial performance, and that the optimal capital structure for an MNC will vary depending on the specific circumstances of the company. However, in general, MNCs should strive to maintain a capital structure that is both financially sound and sustainable.