scholarly journals Weathering an Unexpected Financial Shock: The Role of Cash Grants on Household Finance and Business Survival

2019 ◽  
Author(s):  
Justin Gallagher ◽  
Daniel Hartley ◽  
Shawn Rohlin
Keyword(s):  
Household Finance ◽  
Business Survival ◽  
Financial Shock

The Role of SBA Loans in Small Business Survival after Disaster Events

2021 ◽  
pp. 0739456X2110282
Author(s):  
Maria Watson
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Conditional Logistic Regression ◽  
Small Business Administration ◽  
Confounding Factors ◽  
Term Survival ◽  
Business Survival ◽  
Quasi Experimental

Local businesses are important for recovering communities, yet program analyses of the effectiveness of Federal disaster loans—particularly for businesses—are limited and contradictory. This study looks at the role U.S. Small Business Administration (SBA) Disaster Loans played in the long-term survival of small businesses in Galveston County, Texas after the 2008 Hurricane Ike. This research uses quasi-experimental design, matching methods, and conditional logistic regression to tease out the effect of the loan from potential confounding factors. The results show that businesses that received a disaster loan were significantly more likely to survive than their controls, and businesses that moved were also more likely to survive.

A literature review exploring the role of technology in business survival during the Covid-19 lockdowns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salma S. Abed
Keyword(s):  
Literature Review ◽  
Small Businesses ◽  
Design Methodology ◽  
Human Life ◽  
Critical Role ◽  
Business Survival ◽  
Content Type ◽  
The Impact ◽  
Business Sectors

Purpose The Covid-19 pandemic has affected every aspect of human life. Even though the pandemic length was not too long, a huge volume of research relating to Covid-19 has been published in different contexts. This paper aims to review the literature investigating the impact of Covid −19 on businesses generally and explore studies examining the technology role of business survival during the Covid-19 lockdowns specifically. Design/methodology/approach This study implemented the concept of a systematic review approach to review the literature that has been conducted in the business field during the Covid-19 crisis in general. Additionally, it looks into the research examining the role of technology in business survival in the Covid-19 crisis specifically. All studies were conducted in 2020. A total of 53 studies were identified and categorised into different themes. The research methods, theories and locations have also been analysed. Findings It was found that Covid-19 pandemic has affected all business sectors in several ways. Technology adoption has a critical role for business survival during the Covid-19 crises especially with small businesses. Very limited research has been conducted on the adoption of different technologies during the Covid-19 lockdowns. Originality/value This study presents the most frequent themes and topics that have been explored in the literature during the Covid-19 crisis in the business field. It highlights the methods used in addition to the theories and research locations present in this literature. Finally, it proposes the possible implications of this literature review.

But what about that nice house you own? The impact of asset tests in minimum income schemes in Europe: An empirical exploration

2020 ◽  
pp. 095892872097013
Author(s):  
Sarah Marchal ◽  
Sarah Kuypers ◽  
Ive Marx ◽  
Gerlinde Verbist
Keyword(s):  
Household Finance ◽  
Welfare States ◽  
Microsimulation Model ◽  
Anglo Saxon ◽  
Minimum Income ◽  
The Poor ◽  
The Impact ◽  
Consumption Survey ◽  
European Welfare States

Means-tested transfer schemes in Europe and elsewhere tend to include not only income tests but also asset tests of various sorts. The role of asset tests in minimum income protection provisions has been extensively researched in the Anglo-Saxon context. Far fewer authors have assessed the role of asset tests on social policy in a continental European context. Although asset tests may be useful in singling out the more deserving of the poor, we know relatively little of their actual impact on eligibility and social outcomes in European welfare states. This paper looks at the prevalence and design of asset tests in European minimum income protection schemes. We distinguish between two main types of asset tests: outright disqualification when assets reach a certain value, versus a more gradual tapering at a fictional rate of return. We then analyse in greater detail how asset tests in Belgium and Germany, as representatives of these two types, affect minimum income protection eligibility and poverty outcomes. We use the EUROMOD microsimulation model on the Household Finance and Consumption Survey data in order to assess the effects of asset tests. This survey was explicitly designed to more realistically reflect assets and capital incomes.

scholarly journals Household Finance after a Natural Disaster: The Case of Hurricane Katrina

2017 ◽  
Vol 9 (3) ◽  
pp. 199-228 ◽  
Author(s):  
Justin Gallagher ◽  
Daniel Hartley
Keyword(s):  
Hurricane Katrina ◽  
Natural Disaster ◽  
Credit Card ◽  
Household Finance ◽  
Flood Insurance ◽  
Total Debt ◽  
Home Values ◽  
The Impact ◽  
Financial Shock ◽  
Debt Levels

Little is known about how affected residents are able to cope with the financial shock of a natural disaster. This paper investigates the impact of flooding on household finance. Spikes in credit card borrowing and overall delinquency rates for the most flooded residents are modest in size and short-lived. Greater flooding results in larger reductions in total debt. Lower debt levels are driven by homeowners using flood insurance to repay their mortgages rather than to rebuild. Mortgage reductions are larger in areas where reconstruction costs exceeded pre-Katrina home values and where mortgages were likely to be originated by nonlocal lenders. (JEL D14, G21, G22, Q54)

scholarly journals Real Effects of Financial Distress: The Role of Heterogeneity

2021 ◽  
Author(s):  
Francisco Buera ◽  
Sudipto Karmakar
Keyword(s):  
Financial Distress ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Balance Sheets ◽  
Real Effects ◽  
Theoretical Perspectives ◽  
Standard Models ◽  
Financial Shock

Abstract Which firms are more sensitive to an aggregate financial shock? What can be learnt from these heterogeneous responses? We evaluate and answer these questions from both empirical and theoretical perspectives. Using micro data from Portugal during the sovereign debt crisis we find that highly leveraged firms and firms with a larger share of short-term debt on their balance sheets contracted more in the aftermath of the financial shock. We analyse the conditions under which leverage and debt maturity determine the sensitivity of firms’ investment decisions to financial shocks in standard models of investment under financial frictions. In doing so, we extend these models to feature a maturity choice. We show that simple versions of these models are not consistent with the observed heterogeneous responses. The model needs the presence of frictions when issuing long-term debt to rationalise the empirical findings.

scholarly journals The Role of Urban Mobility in Retail Business Survival

2018 ◽  
Vol 2 (3) ◽  
pp. 1-22 ◽  
Author(s):  
Krittika D'Silva ◽  
Kasthuri Jayarajah ◽  
Anastasios Noulas ◽  
Cecilia Mascolo ◽  
Archan Misra
Keyword(s):  
Urban Mobility ◽  
Business Survival ◽  
Retail Business

Consumer finance in Russia: Income shocks and consumption smoothing

2018 ◽  
pp. 69-91 ◽  
Author(s):  
M. O. Mamedli ◽  
A. A. Sinyakov
Keyword(s):  
Rural Areas ◽  
Household Finance ◽  
Consumption Smoothing ◽  
Lower Income ◽  
Income Shocks ◽  
Consumption Behavior ◽  
Negative Income ◽  
Income Shock ◽  
Consumption Strategies

On the basis of the Russian Survey of Household Finance , we investigate the consumption behavior of Russian households, who faced a negative income shock at the end of 2014. We also analyze the role of crisis-adjusting consumption strategies based on the instruments of financial market, namely an increase in the stock of debt or decrease in liquid and non-liquid assets. Results based on two identification procedures of income shocks show that Russian households were able to smooth around 50% of their income shock. The ability to smooth consumption is lower for those living in rural areas, households with higher levels of debt accumulated before 2014 and those with lower income. Overall, Russian households are not used to spend savings or increase their debt in response to the income changes with the exception of those who already had a higher level of debt by 2014. The results may have important implications for the Bank of Russia policy.

scholarly journals Family Business Survival and the Role of Boards

2013 ◽  
Vol 37 (6) ◽  
pp. 1369-1389 ◽  
Author(s):  
Nick Wilson ◽  
Mike Wright ◽  
Louise Scholes
Keyword(s):  
Family Business ◽  
Business Survival ◽  
Family Business Survival
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