Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France

Stef, Nicolae; Bissieux, Jean-Joachim

doi:10.1016/j.irle.2022.106063

Cited by 17 publications

(14 citation statements)

References 58 publications

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“…As stated previously, the accounting and financial variables for the study of insolvency prediction issues (Serrano-Cinca et al ., 2019) or the outcome of exit paths, including reorganization (Stef and Bissieux, 2022), are selected on the basis of previous empirical evidence. One of the main criticisms associated with this method of selection is the lack of theoretical support.…”

Section: Methodsmentioning

confidence: 99%

“…Despite criticism for lack of theoretical support (Serrano-Cinca et al ., 2019), the power of accounting information to predict corporate insolvency has withstood the test of time (Agarwal and Taffler, 2007; Altman et al ., 2017), and it is widely used in models designed to explain a range of phenomena related to corporate failure. With respect to the resolution of insolvency processes, Stef and Bissieux (2022) use a series of financial ratios with empirical power to explain firms' exit paths, including reorganization. However, these authors only cite previous empirical evidence (Stef and Zenou, 2021; Irfan et al ., 2018) to support the use of these ratios.…”

Section: Introductionmentioning

confidence: 99%

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Prediction of failure in reorganization agreements under Colombia's Corporate Insolvency Act

Abínzano

Bonilla²,

Muga³

2023

ARLA

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PurposeThe aim of this paper is to provide an overview of the impact of the implementation of Colombian Corporate Insolvency Act 1116 of 2006 in the period 2008–2018 and to assess the relevance of a broad set of financial predictors, as well as variables related to the economic context or the characteristics of the process itself, in explaining the failure of reorganization processes.Design/methodology/approachBoth logit and probit models are estimated, starting from a large number of variables proposed in the literature which are then narrowed down to a final selection based on their individual significance and machine learning.FindingsThe results show the prevalence of a limited number of financial variables related to equity, indebtedness, profits and liquidity as predictors of the failure of reorganization processes. The use of financial information from the year prior to the completion of the reorganization improves predictive accuracy and reliability. The debt-to-equity indicator provides no significant explanatory power, while voluntary entry into a reorganization process favors its success.Originality/valueWhile financial and accounting information is used across the literature to predict insolvency events, it is used here to predict success or failure in reorganization processes under the conditions imposed by a specific legislative act in a Latin American context.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Prediction of failure in reorganization agreements under Colombia's Corporate Insolvency Act

Abínzano

Bonilla²,

Muga³

2023

ARLA

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“…This provision is intended to prevent a party's opposition to the failure to hold a hearing from leading to the postponement of the judgment of the case to a later date, pending until better health conditions. Therefore, the courts can examine cases within a timeframe that is consistent with the speed required for the emergency proceedings at issue (Stef & Bissieux, 2022).…”

Section: The System Of Constitutional Review Concerning the Pandemic ...mentioning

confidence: 99%

“…The National Assembly and the Senate have adopted, and President Emmanuel Macron has promulgated the emergency law 2020-290 of 23 March 2020 to deal with the covid-19 epidemic. This law came into force on 24 March 2020 (Stef & Bissieux, 2022).…”

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confidence: 99%

Legal Policy on the Protection of the Right to Health During the Covid-19 Pandemic in France

Savitri

2022

BESTUUR

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<div><table cellspacing="0" cellpadding="0" align="left"><tbody><tr><td align="left" valign="top"><p class="AbstractText">France has regulated the health system in great detail in some laws and regulations, but these regulations are insufficient to face the pandemic of Covid-19. This study aims to describe and analyze legal policies to protect health rights during the COVID-19 pandemic in France. It employs a normative legal research method with data sources such as the Declaration of human and citizen’s rights of 1789, the French Constitution of 1958, and laws and decisions of the French Constitutional Council. Since the Covid-19 pandemic erupted, French legislators have implemented adequate measures to prevent its spread.. The study results indicate that since the Covid-19 pandemic spread, French legislators have implemented adequate measures to prevent the spread of the virus through the appointment of the French Constitutional Council as the protector and guarantor of the fundamental rights of citizens through a system of judicial review. The control of proportionality in the system of judicial review is essential to strike a balance between the public interest of society and the rights of individuals to implement the adaptations necessary to protect public health, particularly during the Covid-19 pandemic.</p></td></tr></tbody></table></div>

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“…According to the results obtained following the analysis carried out by Demmou et al (2021), companies' profits recorded potential decreases of 40-50% following the COVID-19 crisis. Another risk predicted by the researchers refers to the insolvency of the companies, due to increased costs for supply, but also delayed payments (Stef & Bissieux, 2022).…”

Section: Introductionmentioning

confidence: 99%

Resilience Through Digitalization in Organizations

ȘIȘU¹,

Năstase²,

TÎRNOVANU³

et al. 2023

Proceedings of the International Management Conference

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In an increasingly challenging post-pandemic era, entrepreneurs from all over the world are forced to remodel their businesses so that they can meet the new needs of customers. The current paper aims to illustrate what is at the basis of the fundamental change in the way clients have formed their new expectations and what is the approach taken by organizations to remain relevant in the new dynamic environment. Digitalization, considered to be the term that encompasses several concepts regarding the transition to the online business environment and the automation of work processes, will be the main pillar of reference in terms of how organizations are forced to transform. The purpose and importance of Digitalization has become a topic of interest for all organizations, regardless of the activity sector in which they operate. The impact of the pandemic on the business environment led to an assiduous need to adapt to the new conditions. Questions were raised regarding the future of humanity in a climate that tends to be based on digital solutions. The impact of advanced technology in the business environment is seen as resilience in a climate with complex threats on different levels. This study considers demonstrating the importance of resilience within organizations as the engine that makes change happen in crisis situations. Research in the field claims that companies can gain resilience by preparing with complete IT systems, to respond quickly and efficiently in situations of crisis, shock or instability. Even more, there are theories that claim that the state of normality, as perceived by organizations, is not one of peace and stability, but of continuous change and adaptation.

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Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France

Cited by 17 publications

References 58 publications

Prediction of failure in reorganization agreements under Colombia's Corporate Insolvency Act

Prediction of failure in reorganization agreements under Colombia's Corporate Insolvency Act

Legal Policy on the Protection of the Right to Health During the Covid-19 Pandemic in France

Resilience Through Digitalization in Organizations

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