THE FINANCIAL BEHAVIOUR OF CANADIAN PRIVATE CORPORATIONS AND GOVERNMENT ENTERPRISE: A FLOW OF FUNDS ANALYSIS |
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| Authors: | James A Brox Wendy A Maclean |
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| Institution: | University of Walterloo, and Mount Saint Vincent University, Canada |
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| Abstract: | This paper examines and compares the portfolio behaviour of Canadian non-financial government and private enterprises. The greatest difference observed is the relatively small size and yet more active management of the government enterprise asset portfolio. In comparing our model of the private Canadian corporate sector with that of the US, we find the main difference to be a Canadian preference for borrowing rather than equity issue. This preference almost certainly reflects the high level of foreign ownership of Canadian resident corporations. |
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