An empirical analysis of the impact of trade credit on bank debt restructuring

Forgione, Antonio Fabio; Migliardo, Carlo

doi:10.1007/s40888-018-0110-x

Cited by 6 publications

(3 citation statements)

References 53 publications

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“…The significant positive coefficient on the variable SIZE² indicates a non-linear relationship between firm size and the probability of financial distress. This is consistent with the results of Altman et al (2010) and Forgione & Migliardo (2019), which showed a non-linear relationship between firm size and the probability of insolvency or corporate failure. In this context, Nunes et al (2010) and Serrasqueiro & Nunes (2008) argue that profitability increases linearly and subsequently decreases after a certain point.…”

Section: Multiple Output Modelssupporting

confidence: 92%

Financial distress in the Austrian tourism industry: hotels and restaurants analysis

Situm¹

2023

EJTR

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Considering the limited number of studies on the early detection of crises and insolvencies in the tourism industry, there are several research gaps. Therefore, this study analyzes which financial and non-financial variables significantly influence the financial distress of the tourism businesses (hotels and restaurants) in Austria. The resource-based and network-based views were used as theoretical foundations to determine which variables influence the probability of financial distress, with a total of 776 observations from 2005 to 2015 inclusive. The results show that variables describing the endogenous unsystematic risk of tourism businesses (firm-specific level and destination level) make the greatest contribution to explaining financial distress, while exogenous unsystematic and exogenous systematic risk variables show little or no relevance.

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Section: Multiple Output Modelssupporting

confidence: 92%

Financial distress in the Austrian tourism industry: hotels and restaurants analysis

Situm¹

2023

EJTR

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“…Micucci and Rossi [10] find that in terms of geographical location, the smaller the distance between the bank and debt enterprises, the more the banks rely on soft information instead of credit score (except for credit score used for monitoring), and the higher the probability of debt restructuring. Forgione and Migliardo [11], based on a sample of Italian enterprises, show that trade credit, profitability, geographical location, and performance are highly correlated with the possibility of bank debt restructuring of enterprises, and trade credit is widely used by enterprises in financial difficulties.…”

Section: Theoretical Analysis and Research Hypothesismentioning

confidence: 99%

Political Connections, Debt Restructuring, and Enterprise Investment: Evidence from China

Jiang

2020

Discrete Dynamics in Nature and Society

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This paper shows that the link between debt restructuring and enterprise investment in emerging economies hinges critically on the political connections. Taking Chinese A-share listed enterprises from 2005 to 2016 as samples, we examine whether and how political connections affect the relationship between debt restructuring and enterprise investment based on the DID method. The results show that compared with nonpolitically connected enterprises, debt restructuring effectively improves the investment efficiency in enterprises with political ties, which is mainly due to alleviating the overinvestment and underinvestment. Furthermore, the positive effect of debt restructuring on investment is more prominent in enterprises with weak strength of political connection. It is worth noting that as the strength of political connection increases from weak to strong, the positive impact of debt restructuring on investment turns to negative impact, which reflects the heterogeneity of connection strength on the relation between debt restructuring and investment. This paper provides new evidence for understanding the investment behaviour of debt restructuring enterprises and provides some policy implications for managers and decision-makers intending to improve the investment efficiency and enhance the sustainable development of enterprises from the perspective of political connections.

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“…Credit restructuring can only be carried out on the basis of a written application from a customer with a substandard, doubtful and congested credit quality category. The Bank may conduct debtor debt restructuring that still has business prospects and ability to pay while still observing prudential principles and Financial Accounting Standards [16].…”

Section: Implementation Of Provisions On Credit Restructuring For Nonmentioning

confidence: 99%

Implementation of Credit Restructuring Provisions for Debtors of Non-Performing Loans in Bank Credits

Putra¹,

Budiartha²,

Sujana³

2019

Proceedings of the International Conference of Social Science

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Indonesia government's effort made to overcome the high increase of nonperforming loan is issuing policy in the form of Bank Indonesia Regulation No. 2/15/PBI/2000 concerning Credit Restructuring in the form of a reduction in loan interest rates, extension of credit period, reduction of interest credit arrears, reduction of loan principal arrears, addition of credit facilities, and conversion of credit to temporary capital participation. Empirically, barriers to implementing this strategy still occur: obstacles in the process, obstacles to implementation, and obstacles to legal factors. With an Indonesian legal perspective approach, the study examines the application of strategies to find alternative solutions by applying empirical legal research methods. The results show that deviations in applying credit restructuring provisions are the leading factors that hinder their success, aside from amendments to the provisions that occur. Amendments must be reduced and prospective debtors should gain an in-depth understanding of the system in credit.

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An empirical analysis of the impact of trade credit on bank debt restructuring

Cited by 6 publications

References 53 publications

Financial distress in the Austrian tourism industry: hotels and restaurants analysis

Financial distress in the Austrian tourism industry: hotels and restaurants analysis

Political Connections, Debt Restructuring, and Enterprise Investment: Evidence from China

Implementation of Credit Restructuring Provisions for Debtors of Non-Performing Loans in Bank Credits

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