TRENDS IN Australian corporate financing

This paper examines recent trends in the corporate finances of Australian listed companies, with an emphasis on the experience since the onset of the global financial crisis. Over this period companies have relied primarily on internal funding to finance their activities. There has been a modest pickup in debt financing while equity raisings have remained subdued. The pattern has been driven almost entirely by the resources sector which increased borrowing during its investment boom. Companies outside of the resources sector have exhibited little demand for external finance, reflecting more muted investment behaviour which has sustained the asset base but has not driven expansion. An earlier version of this paper was presented to the 2014 Australian Centre for Financial Studies' Melbourne Money and Finance Conference.