SMEs capital structure determinants during severe economic crisis: The case of Greece

Balios, Dimitris; Daskalakis, Nikolaos; Eriotis, Nikolaos; Vasiliou, Dimitrios

doi:10.1080/23322039.2016.1145535

Cited by 57 publications

(54 citation statements)

References 42 publications

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“…Zerriaa and Noubbigh (2015) investigated the factors affecting the capital structure in 32 non-financial firms on the Tunisian stock exchange, demonstrating that firm size has a positive relationship with leverage ratio. This result is in line with the results of Ahmad and Muhtar (2017), Kopyakova (2017), and Balios et al (2016). Large corporations are usually maturing, with high fixed assets, profitability, and financial flexibility.…”

Section: Firm Sizesupporting

confidence: 80%

Determinants of Capital Structure and Speed of Adjustment: Evidence from Iran and Australia

Kythreotis¹,

Nouri²,

Soltani³

2017

IJBA

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This study investigated different companies' capital structures using a comparative approach in a developing country (Iran) and a developed country (Australia). The purpose of this study was to identify the factors affecting the capital structure based on the company's characteristics in Iran and Australia. The main characteristics of the companies used in this research are mainly based on the variables used in Pecking order theory and the Trade-off theory namely tangibility, firm size, profitability, and business risk. Three other variables including liquidity, asset utilization ratio and speed of adjustment were also investigated. Two indicators of total debt ratio and long-term debt ratio have been used as corporate leverage index. The population of this study included 178 Iranian companies listed on Iran's stock exchange and 187 Australian companies listed on Australia's stock exchange from 2009 to 2015. To test the hypotheses, Panel data and Eviews software were used. To ensure robustness of the results, the speed of adjustment was estimated using GMM and OLS (with fixed and random effects).The results of this study showed that dynamic trade-off theory could better explain the changes in capital structure in Iran and Australia. The results also revealed significant differences in factors affecting the capital structure in Iran and Australia.

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Section: Firm Sizesupporting

confidence: 80%

Determinants of Capital Structure and Speed of Adjustment: Evidence from Iran and Australia

Kythreotis¹,

Nouri²,

Soltani³

2017

IJBA

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“…However, previous studies on capital structure of small and medium firms in a context of crisis show the existence of a negative association between tangible assets and leverage, especially with long-term leverage (Balios et al, 2016;Muijs, 2015;Proenç a et al, 2014). Moreover, for family firms, the use of tangible assets as collateral for new debt may create a strong exposure of family assets due to the close overlap of family members' wealth and the business.…”

Section: Asset Structure (Tangible Asset)mentioning

confidence: 95%

Capital Structure Determinants in Family Firms: An Empirical Analysis in Context of Crisis

Migliori¹,

Maturo²,

Paolone³

2018

IBR

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The purpose of this paper is to investigate the capital structure of family firms in a context of crisis. Specifically, it aims to discover whether and how the determinants of their capital structure have a different impact on firms' leverage before and during the recent global financial crisis. Considering the pecking order theory (POT), trade-off theory (TOT), and agency theory (AT), this study analyzes 1,502 Italian medium family firms comparing the pre-crisis (2005)(2006)(2007) and crisis (2008)(2009)(2010) periods. This research shows that that current liquidity, asset structure, and agency costs are the most important variables in influencing medium family firms' leverage, in both the pre-crisis and crisis periods. Moreover, during the crisis, agency costs increase and have a negative influence on the short-term leverage highlighting that crisis contingencies influence the agency-based effects on family firm's leverage. Furthermore, our findings highlight that a more exhaustive understanding of family firms' capital structure can be achieved through the combined use of different theories.

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“…Balios, et al . () point out the country's critical characteristics that make it a unique opportunity for research on small business resilience. It is a developed economy and member of a community of developed countries in terms of macroeconomic and institutional structures.…”

Section: Background and Motivation For The Studymentioning

confidence: 99%

Bouncing Back from Extreme Weather Events: Some Preliminary Findings on Resilience Barriers Facing Small and Medium‐Sized Enterprises

et al. 2018

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Extreme weather events (EWEs) pose unprecedented threats to modern societies and represent a much‐debated issue strongly interlinked with current development policies. Small and medium‐sized enterprises (SMEs), which constitute a driving force of economic growth, employment and total value added, remain highly vulnerable to and ill prepared for such environmental perturbations. This study investigates barriers to SMEs’ resilience to EWEs in an attempt to shed light on enabling factors that can define effective organizational responses to non‐linear environmental stimuli. Relying on structural equation modeling and data gathered from 109 SMEs that recently experienced EWE impacts, we link the general concept of SMEs’ resilience barriers to EWEs with a series of elements to determine specific internal and external factors that contribute the most to EWE resilience. In particular, external barriers of institutional conditions and mechanisms of support and guidance as well as internal barriers of resources and managerial perceptions are found to be the most critical ones in determining resilience. The assessment offers essential research evidence for practitioners on SME management and sets forth linkages with current mechanisms for policy interventions towards an appropriate resilience agenda for SMEs. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

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SMEs capital structure determinants during severe economic crisis: The case of Greece

Cited by 57 publications

References 42 publications

Determinants of Capital Structure and Speed of Adjustment: Evidence from Iran and Australia

Determinants of Capital Structure and Speed of Adjustment: Evidence from Iran and Australia

Capital Structure Determinants in Family Firms: An Empirical Analysis in Context of Crisis

Bouncing Back from Extreme Weather Events: Some Preliminary Findings on Resilience Barriers Facing Small and Medium‐Sized Enterprises

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