RDP 9311: Agency Costs, Balance Sheets and the Business Cycle Data Appendix

The ratio of corporate debt to total assets is obtained from two sources: the first source is from Lowe and Shuetrim (1992), who use Company Review Service (CRS) data, and the second source is from the Australian Stock Exchange (STATEX) database. Both series are measured at book value. Lowe and Shuetrim sample a constant group of 66 public and proprietary companies operating in Australia from 1973 to 1990, when the collection was discontinued. The STATEX database samples a constant group of 80 public companies from 1982.

The asset price index is from Blundell-Wignall, Lowe and Tarditi (1992). Three separate asset price indices (based in 1984–85) are used to construct the aggregate asset price index. The commercial property price index is constructed from internal sources using Sydney CBD prices. The housing price index is from the Real Estate Institute of Australia, and the All Ordinaries share price index is taken from Table F.5, RBA Bulletin. The aggregate index gives shares a 29 per cent weight, housing a 59 per cent weight and commercial property a 12 per cent weight. The asset price index excluding housing gives shares a 70.7 per cent weight and commercial property a 29.3 per cent weight. This is based on the proportions to the total less housing.

The consumer price index, indexed 1984/85=100, is adjusted for the inclusion of Medicare and Medibank.

Individual state corporate liquidation figures are obtained from the Corporate Affairs commission to 1988. Thereafter, they are obtained from the Corporate Relations Unit. The state liquidation figures are divided by state population, and then indexed to 1985=100. A combined series is obtained by progressively including other state figures when they became available, and combined by weighting each state by its share of the population as of July 1985. NSW liquidations are available from 1967, SA and WA are available from 1973, Victoria from 1981. Other states and territories are not available.

Bank debt, defined as total liabilities, and bank assets are from Table B.1 RBA Bulletin, from 1975 to 1992. Prior to 1975, trading bank and savings bank total assets are the sum of the individual components, RBA Bulletin, various issues. Total deposits proxy total liabilities, and both trading bank and saving bank series are then scaled up to 1975 figures.

The prime rate is the minimum of the range of large business indicator rates, Table F.3, RBA Bulletin. Prior to December 1978, the predominant rate is used. The 90 day bank bill rate is from Table F.1, RBA Bulletin. Monthly averages of both rates are used.

Responses to the survey questions are from the Australian Confederation of Commerce and Industry and Westpac Banking Corporation Survey of Industrial Trends, various issues.

Market capitalisation of listed equities is from the RBA Bulletin, Table F.5. Business credit is from the RBA Bulletin, Table D.3, and is available from December quarter 1976. Business credit has been adjusted for breaks in the series, and quarterly figures are obtained by averaging the monthly figures.

The annual averages of the five year forecasts of non-farm GDP are obtained from SYNTEC ‘Five Year Forecasts’, published by SYNTEC Economic Services, various issues.