Capital Structure and Sensitivity in SME Definition: A Panel Data Investigation

Aybar-Arias, Cristina; Casino-Martínez, Alejandro; López-Gracia, José

doi:10.2139/ssrn.549082

Cited by 8 publications

(2 citation statements)

References 29 publications

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“…Several empirical studies have been conducted on these theories, but existing studies provide no consistent conclusions for SMEs (Aybar Arias et al, 2001). However, some studies indicate that the capital structure of a company depends mostly on its sector of activity (Acedo Ramírez and Rodríguez Osés, 2003; Balakrishnan and Fox, 1993; Lev, 1969; Scott, 1980).…”

Section: Theoretical Framework and Hypothesismentioning

confidence: 99%

The financing of SMEs in the Spanish tourism sector at the onset of the 2008 financial crisis: Lessons to learn?

Martínez

Rubio

2020

Tourism Economics

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Small and medium enterprises (SMEs) are a powerful economic engine in many European countries. Moreover, tourism SMEs are particularly important in the economies of countries in southern Europe due to the climate and sociodemographic situation, among other reasons. In Spain, specifically, these enterprises are a vital economic asset. Nonetheless, neither the importance of SMEs in the tourism industry nor the main factors that influence their capital structure have been sufficiently studied. We used panel data methodology with a regression model to analyse the capital structure of SMEs in the tourism sector at the onset of the 2008 financial crisis. Our results show the significance of SMEs within the tourism industry as well as the need to take into account the main factors that influence their capital, which are type (micro, small or medium enterprise), profitability, number of employees and size (logarithm of total assets). Furthermore, despite the robustness of these companies, they have been affected by the crisis. This study is of great interest as it provides indicators to understand the strength of tourist SMEs to confront potential crises.

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Section: Theoretical Framework and Hypothesismentioning

confidence: 99%

The financing of SMEs in the Spanish tourism sector at the onset of the 2008 financial crisis: Lessons to learn?

Martínez

Rubio

2020

Tourism Economics

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“…In addition, small businesses do not issue traded securities that are continually priced in public markets. SMEs are often managed by a very few directors who frequently own the total capital of the firm and aim to minimize the intrusion in their business rather than reaching an optimal debt target (Aybar-Arias, Casino-Martinez, López-Gracia, 2003).…”

Section: Informationmentioning

confidence: 99%

The Optimal Rating Philosophy for the Rating of SMEs

Rikkers

Thibeault

2007

SSRN Journal

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The objective of this research is to determine the optimal rating philosophy for the rating of SMEs, and to describe the consequences of the chosen philosophy on several related aspects. As to our knowledge, this is the first paper that studies the considerations of financial institutions on what rating philosophy to adopt for specific portfolios.The importance for banks to have a solid risk framework to predict credit risk of their counterparties is well reflected by the quality and the quantity of research on this subject. Moreover, a good risk framework is vital to become compliant with the new Basel II framework.Problem is that financial institutions nearly always neglect the first step in the rating model development process: the determination of the rating philosophy. It is very important for financial institutions to decide whether they want their internal rating systems to grade borrowers according to their current condition (point-in-time), or their expected condition over a cycle and in stress (through-the-cycle), because the rating philosophy influences many aspects such as: credit approval, pricing, credit and portfolio monitoring, the regulatory and internal capital requirements and the competitive position of a bank. This makes the question which rating philosophy to use very important.Moreover, many different modelling techniques exist to determine credit risk, but few attempts have been devoted to credit risk assessment of small commercial loans, although SME exposures are relatively important for European banks. SMEs have specific characteristics that influence the rating philosophy and therefore the development and use of credit risk models. These SME characteristics are taken into account in the analysis to determine the optimal rating philosophy.

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Capital Structure and Returns

Sivaprasad

Muradoğlu

2011

Capital Structure and Corporate Financing Decisions

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Capital Structure and Sensitivity in SME Definition: A Panel Data Investigation

Cited by 8 publications

References 29 publications

The financing of SMEs in the Spanish tourism sector at the onset of the 2008 financial crisis: Lessons to learn?

The financing of SMEs in the Spanish tourism sector at the onset of the 2008 financial crisis: Lessons to learn?

The Optimal Rating Philosophy for the Rating of SMEs

Capital Structure and Returns

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