scholarly journals Firm’s Finance and Influence of Global Financial Crisis in the Selected European Countries

2018 ◽  
Vol 66 (2) ◽  
pp. 583-593
Author(s):  
Lucie Szczeponková
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Banking Crisis ◽  
European Countries ◽  
Financial Constraint ◽  
Systemic Crisis ◽  
External Sources ◽  
Medium Enterprises

Small and medium enterprises (SME) are key in creation of new jobs and they significantly involved on GDP, innovations and economic growth. These firms very often rely on financial extraneous sources, but acces to these finance is significant business barrier. It means that SME face to financial constraint. This financial constraint is exacerbated by the financial crisis. The goal of this article is to clarify influence of the systemic banking crisis on use own and external sources of finance within small and medium enterprises in the selected european countries. The influence of global financial crisis on firm’s finance in selected european countries is estimated by the method Difference-in-Difference (DiD) in combination with panel data. The results show, that companies in regions hit by the systemic banking crisis had a lower share of long-term investments funded by share issues in 2009 or 2012, compared with companies in regions not affected by this crisis in 2005, 2009 or 2012, and companies in regions affected by the systemic crisis in 2005 and higher share of long-term investments financed from ekvity capital. During the financial crisis the conditions for providing extraneous sources to private entities are diminishing, and especially small and medium-sized businesses are forced to use other sources of funds.

scholarly journals MSMEs IN TIMES OF CRISIS. EVIDENCE FROM INDONESIA

2020 ◽  
Vol 5 (2) ◽  
pp. 91
Author(s):  
Tulus Tambunan
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Asian Financial Crisis ◽  
The Past ◽  
Transmission Channels ◽  
Different Types ◽  
Medium Enterprises ◽  
The Impact

This descriptive study is about micro, small and medium enterprises (MSMEs) in Indonesia. It has two objectives: (i) to estimate the impact of the Covid 19 crisis on MSMEs and compares it with other previous problems. Second, to explore crisis mitigation (CM) measures adopted by affected MSMEs. It shows that different types of crises have different transmission channels through which such situations affected MSMEs. CM measures adopted by affected MSMEs also vary by different types of emergencies and hence various business risks. In the 1997/98 crisis, replacing imported raw materials with local raw materials was widely adopted. The 2008/09 problem was finding new customers or markets in unaffected countries or switching to the domestic market. While in the case of the Covid-19 crisis, switching temporarily to manufacturing medical devices such as masks and changing the marketing system from conventional to e-commerce are the most widely adopted strategies. There is already a lot of literature on economic crises such as the 1997/98 Asian financial crisis and the 2008 global economic crisis. The Covid 19 pandemic's reports and articles impact on the economy have emerged in the past two months. To the best of the author's knowledge, this is the first study on how such crises affected and through what transmission channels, MSMEs. Keywords: MSMEs, 1997/98 Asian Financial Crisis, 2008/09 Global Financial Crisis, COVID-19 Crisis, CM MeasuresJEL Classification: D2, F6, G01, I1

Global Crisis and Financial Distress Likelihood of SMEs

2018 ◽  
pp. 81-99
Author(s):  
Andrea Quintiliani
Keyword(s):  
Panel Data ◽  
Financial Distress ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
European Countries ◽  
Financial Instruments ◽  
Global Crisis ◽  
Ex Post ◽  
The Global Financial Crisis ◽  
Medium Enterprises

In the aftermath of the global financial crisis, this chapter sheds light on the determinants of the financial distress costs between Italian and German small and medium enterprises (SMEs). The authors propose an innovative formulation of the expected costs originated by financial distress expressed as the product of the expected financial distress likelihood times the total amount of the financial distress costs if insolvency does occur. The model is estimated using panel data methodology on samples from two European countries (Italy and Germany). The results indicate that the amount of ex-post costs depends on derivative financial instruments, intangible assets, and relation with local banks (small local banks rather than large banking groups).

Assessing the Impact of Recent Global Crisis on Small and Medium Enterprises (SMEs): Evidence from Indonesia

2013 ◽  
Vol 1 (1) ◽  
pp. 6
Author(s):  
Tri Winarno
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Quantitative Methodology ◽  
Spatial Error ◽  
Medium Scale ◽  
Spatial Lag Model ◽  
Medium Enterprises ◽  
The Impact

In this article we examine three broad issues. The first is to measure the impact of 2008 global financial crisis on Indonesia’s economy, particularly on loans extended to small and medium scale enterprises at regional level. Next is to analyze significant factors of inducing loans extended to small and medium scale enterprises. Finally, it is to fill the gap in the literature by introducing a quantitative methodology. A spatial lag model and spatial error model are used to assess the three broad issues. Regionally, quarterly panel data spanning from 2002 up to 2011 are employed to support the analysis. One of the results is the global financial crisis that negatively impacts on Indonesia economy, particularly on the performance of small and medium enterprises (SMEs).  In terms of loan extended to the SMEs, there is strong and positive spatially correlation among province, showing commoving and integrating economy within the territories of Indonesia. Finally, this research suggests that interest  rates is not significantly correlated with loans to SMEs, which indicates that the access to financial institutions is more important and urgent to boost the performance of SMEs in Indonesia which is  reinforcing the opinion of financial inclusions for SMEs.

scholarly journals The Development of Small and Medium Enterprises - Their Impact on the Growth of Employment in Kosovo

2016 ◽  
Vol 4 (1) ◽  
pp. 38
Author(s):  
Hysni Terziu ◽  
Isuf Lushi
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
The United States ◽  
Theory And Practice ◽  
New Work ◽  
Business Decision ◽  
The Creation ◽  
The Government ◽  
Medium Enterprises

The development of small and medium enterprises (SME) at a satisfied level can be achieved only through the application of knowledge and best practices that are developed at private sector, considering as their main derivation - the creation of new work places. The purpose of this paper is that even in our theory and practice to be provided modern concepts regarding the management of small and medium enterprises and regarding the business decision making. Small and medium enterprises can be considered as engines for the creation of new working places, in other words, can be considered as incubators for innovation and entrepreneurship. But in many poor countries, small and medium enterprises are not considered as the main players in the local ecosystem, which makes many of them operating outside the formal legal system and which phenomena results in the increase of informality and in the decrease of productivity. In addition, the condition becomes harder as they lack the funding and the long-term capital which on the other hand are the basis for the creation and function of companies. The development of SMEs is considered as the basic generator of economic growth. This development should be based on the advantages which should be further developed and on the obstacles and weaknesses, which, through strategies and means of economic policy, must be overcome and revitalized. Based on our studies, in the overall context of this work can be conducted the structuring of SMEs and the process of making business decisions in Kosovo. The focus of the analysis in this paper is the creation of friendly conditions for the development of small and medium enterprises towards employment policies and structural reforms, institutional market economy, generating of new work places. The necessity of these actions lays on the fact that in Kosovo exists a very large army of unemployed youth. The world today is undergoing through a global financial crisis which had started in the United States in 2008 and which has spread all around the globe. It can be said that this global financial crisis has been the longest that this world has recognized. For this reason, to the government of any country is added one more task, which is even more difficult, that through its policies to do the impossible in order to overcome this crisis and to send the respective country towards economic development, more specifically towards the development of the small and medium enterprise which in turn will have an impact on the decrease of unemployment. In addition, the purpose of this study would be to identify the current situation of small and medium enterprises, their structuring and their components in Kosovo.

Global Crisis and Financial Distress Likelihood of SMEs

2021 ◽  
pp. 1097-1116
Author(s):  
Andrea Quintiliani
Keyword(s):  
Panel Data ◽  
Financial Distress ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
European Countries ◽  
Financial Instruments ◽  
Global Crisis ◽  
Ex Post ◽  
The Global Financial Crisis ◽  
Medium Enterprises

In the aftermath of the global financial crisis, this chapter sheds light on the determinants of the financial distress costs between Italian and German small and medium enterprises (SMEs). The authors propose an innovative formulation of the expected costs originated by financial distress expressed as the product of the expected financial distress likelihood times the total amount of the financial distress costs if insolvency does occur. The model is estimated using panel data methodology on samples from two European countries (Italy and Germany). The results indicate that the amount of ex-post costs depends on derivative financial instruments, intangible assets, and relation with local banks (small local banks rather than large banking groups).

Determinants of Spot and Forward Interest Rates in Brazil in an International Liquidity Scenario: An Econometric Analysis for the Period 2007-2019

2021 ◽  
Vol 10 (1) ◽  
pp. 19
Author(s):  
Pedro Raffy Vartanian ◽  
Sérgio Gozzi Citro ◽  
Paulo Rogério Scarano
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
International Liquidity ◽  
Vector Autoregressive ◽  
International Financial Crises ◽  
International Financial Crisis ◽  
Level Of Activity ◽  
Systemic Crisis ◽  
The Global Financial Crisis

Over the last 25 years, Brazil has been among the countries with the highest interest rates globally. High interest rates have been necessary during several recent times, such as in the period from 1997 to 1999, due to the repeated international financial crises that have plagued the country. From 1999, a sustained path of interest rate reduction begun. With the outbreak of the 2008 international financial crisis, the Brazilian monetary authorities promoted a new round of falling domestic interest rates in response to the recessive effects and the threat of a systemic crisis that could hang over the national financial system. In 2012, a set of interventionist nature policies led to a decrease in the Selic rate. Thus, looking at the last 25 years, it appears that many factors have started to influence the trajectory of Brazilian interest rates. In this context, the present work aims to identify, based on empirical research, the determinants of spot and future interest rates. As a methodology, the research uses a multivariate econometric vector autoregressive model (VAR) with error correction (VEC). The analysis covers the years 2017 to 2019, corresponding to the period in the aftermath of the global financial crisis of 2008. The results evidence that both the spot rate and the DI future can be determined by the fluctuations in the level of inflation and by the level of activity and the real exchange rate, in addition to the effects of the lagged variables themselves.

scholarly journals ADJUSTMENT SPEED OF DEBT MATURITY: EVIDENCE FROM FINANCIAL CRISES IN EAST ASIA

2021 ◽  
Vol 24 (1) ◽  
pp. 71-92
Author(s):  
Hasan Tekin ◽  
Ali Yavuz Polat
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
East Asian ◽  
Debt Maturity ◽  
Least Square ◽  
Exogenous Shocks ◽  
Adjustment Speed ◽  
The Global Financial Crisis ◽  
Debt Holders

We investigate the change in adjustment speed of debt maturity for East Asian firms between 1990 and 2017 by including two exogenous shocks: the Asian Financial Crisis 1997-1998 (AFC) and the Global Financial Crisis 2007-2009 (GFC). We employ the least square dummy variable correction and find that East Asian firms have a slower adjustment of long-term debt over time. Besides, the decrease in adjustment speed of long-term debt after the GFC is more compared to the decrease after the AFC. Further analysis shows the optimal debt maturity differs across countries and industries. Another important implication of our results is that firms in high governance countries are more likely to close the gap between the actual and target debt maturity in time. Overall, debt holders and investors should consider financial uncertainties.

scholarly journals MODERN PROBLEMS OF MICROFINANCE OF SMALL AND MEDIUM ENTERPRISES UNDER RUSSIAN CONDITIONS

2020 ◽  
pp. 12-16
Author(s):  
Н. Л. Баламирзоев ◽  
Н. С. Суракатов
Keyword(s):  
Russian Federation ◽  
Small And Medium Enterprises ◽  
European Countries ◽  
Foreign Experience ◽  
The Russian Federation ◽  
Medium Enterprises

В статье рассмотрены особенности микрофинансирования малых и средних предприятий. Особое внимание уделено зарубежному опыту микрофинансирования в ведущих европейских странах, США и Китае. Также в статье обозначены проблемы, которые препятствуют активному использованию преимуществ микрофинансирования в Российской Федерации. The article discusses the features of microfinancing of small and medium enterprises. Particular attention is paid to foreign experience in microfinancing in leading European countries, USA and China. The article also identifies problems that hinder the active use of the benefits of microfinance in the Russian Federation.

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