Determinants of Bank Debt in a Continental Financial System: Evidence from Spanish Companies

Alonso, Pablo de Andrés; López‐Iturriaga, Félix J.; Sanz, Juan Antonio Rodríguez; González, Eleuterio Vallelado

doi:10.1111/j.1540-6288.2005.00104.x

Cited by 28 publications

(16 citation statements)

References 34 publications

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“…De Andres Alonso, Inturriaga, Sanz and Gonzalez (2005) agrees with this view, and proposed that this action is also a signal of a pledge to self-regulation, which reduces debt agency costs.…”

Section: Agency Cost Theorysupporting

confidence: 52%

Leverage and the Jordanian Firms’ Value: Empirical Evidence

Ramadan¹

2015

IJEF

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This study aimed to investigate the assumed impact of the leverage on the firms' value utilizing unbalanced pooled Ordinary Least Square (OLS) cross-sectional time series panel data regression approach to all listed companies in Amman Stock Exchange (ASE) during the period 2000-2013 after excluding the financial sector and services sector, due to their own characteristics. F-test was used to test the hypothesis that the changes in the firms' leverage level significantly explain the changes in the firms' value. The results shows that the firms' leverage level affect the firms' value for the Jordanian listed companies included in the sample test. This result is consistent with the result of Rajan and Zingales (1995) who find inverse association between debt and performance.

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Section: Agency Cost Theorysupporting

confidence: 52%

Leverage and the Jordanian Firms’ Value: Empirical Evidence

Ramadan¹

2015

IJEF

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“…Regarding non-payment by companies according to their size, some works have found significant differences between companies with different volumes of profits [70]. The results of this study corroborate these differences for companies of different sizes, while considering the number of employees.…”

Section: Group Comparison Analysissupporting

confidence: 85%

The Role of Mutual Guarantee Institutions in the Financial Sustainability of New Family-Owned Small Businesses

et al. 2019

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Small family-owned companies are the most common type of European business structure and are characterised by their orientation to long-term goals. Therefore, they can play an important role in the launching of businesses related to sustainable growth. However, access to finance is difficult for start-ups. Mutual Guarantee Institutions (MGIs) mitigate this problem by facilitating long-term guaranteed loans, but they must assume responsibility for default losses. This paper analyses, as of the end of 2018, the loan default of the portfolio of guarantees formalised by Spanish MGIs with new companies between 2003 and 2012, a period including both economic growth and recession. The objective is to identify the annual evolution and the average global cost of default, as well as the differences in said portfolios according to the purpose of the loan, company size and economic activity. The analysis was developed while considering two scenarios: one determinist, using a ratio method and another stochastic, using an analysis of variance. We found differences in the distribution of defaults for the variables company size and sector of activity. The findings provide relevant information for managers and Public Administrations to improve the distribution of guarantees between Spanish MGIs and public institutions, and their coverage of Small and Medium Enterprise (SME) loan defaults.

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“…Financial analysts’ estimates are more dispersed in Continental Europe than in North America. Leverage is larger in Continental Europe since these firms rely proportionally more on bank debts (Alonso et al, 2005). We spot a larger number of loss‐making firms in North America compared to Continental Europe.…”

Section: Resultsmentioning

confidence: 99%