scholarly journals ON THE INFLUENCE OF BANKING RELATIONSHIPS ON FRENCH SMES FAILURE

2020 ◽  
Author(s):  
David Veganzones ◽  
Eric Séverin
Keyword(s):  
Financial Ratios ◽  
Corporate Failure ◽  
Relationship Length ◽  
Financial Difficulties ◽  
Length Relationship ◽  
Banking Relationships ◽  
Banking Relationship ◽  
Form Type ◽  
Corporate Failure Prediction ◽  
The Relationship

Small and medium firms are highly dependent on banks to finance their business activities. Thus, banking relationship may be crucial to overcome financial difficulties and to ensure their continuity. Accordingly, this paper investigates the influence of banking relationship on SMEs failure. In particular, four measures that firms can control to build their banking relationships and, that resemble standard variables from the literature on bank/firms relationships are evaluated: the breadth of relationships (number of banks), the relationship length(relationship duration), the relationship proximity (bank-firm distance) and, the relationship form (type of bank). Applying a logistic regression to a unique sample of 4960 French SME firms over the period 2013-2016, we evidence that banking relationships have a significant role on the SMEs likelihood of failure. More precisely, we find that multibank relationships, working with a small bank and relationship length are significantly negative correlated with SMEs failure. The opposite effect appears in bank-firm distance, which increases the SMEs probability of failure. Additionally, a corporate failure prediction model was built based on both financial ratios and banking relationship variables. The performance of this model was compared to a model based solely on financial ratios as predictive indicators. The results indicate that banking relationship variables possess prediction power to failure and enhance the performance of corporate failure models. Consequently, our findings are important from a policy perspective to further comprehend the role that banks play on SMEs failure.

Does Performance Breed Slack? Ownership as a Contingency to the Performance Feedback and Slack Relationship

2021 ◽  
pp. 014920632110142
Author(s):  
Varkey Titus ◽  
Jonathan P. O’Brien ◽  
Jaya Dixit
Keyword(s):  
Performance Feedback ◽  
Stock Price ◽  
Theory Of The Firm ◽  
Organizational Outcomes ◽  
Organizational Slack ◽  
Length Relationship ◽  
Different Types ◽  
Stakeholder Perspective ◽  
Shareholder Perspective ◽  
The Relationship

Although organizational slack is a prominent construct in strategic management, it is often treated as an antecedent or enabler of other organizational outcomes, and thus our understanding of where slack comes from is underdeveloped. We draw on the behavioral theory of the firm to develop a better understanding about the antecedents of organizational slack. In so doing, we address a gap in the literature on the antecedents of slack by developing base models showing how and why performance feedback influences the three most common types of slack studied in the literature. Moreover, we contend that ownership is an important contingency that influences these relationships because different types of owners are motivated by different norms. Within a “communitarian” culture such as Japan, domestic owners generally have a multifaceted relationship with the firm and hence are motivated by norms of reciprocity and embeddedness, thereby allowing managers to adopt a stakeholder perspective. In contrast, foreign investors typically have only an arm’s-length relationship with the firm and are thus motivated by stock price, thereby putting “contractarian” pressures on managers to adopt a shareholder perspective. This domestic/foreign ownership distinction influences how resources are allocated and therefore the relationship between performance feedback and different types of slack in the firm. We further emphasize that these relationships will vary in accordance to where the slack resides: internal or external to the firm. We find general support for our hypotheses.

scholarly journals Seeking Incentives for a Successful Second and third Business Opportunity after Bankruptcy in Times of Recession

2021 ◽  
Vol Volume II (December 2021) ◽  
pp. 46-59
Author(s):  
Aristeidis Bitzenis
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Vulnerable Groups ◽  
Corporate Failure ◽  
Business Opportunity ◽  
Self Employment ◽  
Financial Difficulties ◽  
Exogenous Factors ◽  
Socially Vulnerable Groups ◽  
Second Chance

In the years of the financial and sovereign debt crisis in Greece, many viable businesses that are facing financial difficulties are led to liquidation rather than timely restructuring, with very few entrepreneurs having a second chance. This corporate failure faced by Greek companies in recent years may have been caused by either endogenous or exogenous factors or a combination of these two. In this paper we investigate the factors (economic, social and political) that will help to facilitate entrepreneurs' access to a second and third opportunity, taking also into account socially vulnerable groups such as disabled people and women entrepreneurs. Moreover, we try to find the characteristics that would encourage honest bankrupt entrepreneurs to a second business venture and the sectors where a second chance may have increased chances of sustainability in Greece. The aim of our research is to lead Greece to higher levels of self-employment, reduction in unemployment, and exit from the crisis.

scholarly journals Governance and Financial Difficulties of Conventional Banks

2019 ◽  
Vol 2 (2) ◽  
pp. 121-134
Author(s):  
La Ode Sumail
Keyword(s):  
Fixed Effects ◽  
Large Scale ◽  
Lagrange Multiplier Test ◽  
Fixed Effects Model ◽  
Insider Ownership ◽  
Financial Difficulties ◽  
Private Banks ◽  
Conventional Banks ◽  
Relationship Of ◽  
The Relationship

This study examines the connection between governance, financial performance, and financial difficulties of 27 conventional private banks during the pe3riod of 2015-2018. In order to meet the accuracy of the model in the regression analysis, the Lagrange Multiplier test was previously performed so that the Fixed Effects model was chosen. The relationship of insider ownership with ROA tends to be in the shape of inversed-U and the relationship between institutional ownership and ROA is significantly positive. The relationship between ROA and financial difficulties is significantly negative. Older or established large scale banks tend to have high ROA. This happens because the greater the assets, the healthier the cash flow of the bank, so that the potential for return of asset is quite high and financial difficulties tend to be low or avoidable.

scholarly journals Population structure and reproduction of a migratory fish Leporinus piau (Characiformes: Anostomidae) in a semiarid tropical reservoir, Brazil

2016 ◽  
Vol 64 (4) ◽  
Author(s):  
Darlan Dantas Alves de Araújo ◽  
Jônnata Fernandes de Oliveira ◽  
Rodrigo Silva da Costa ◽  
José Luís Costa Novaes
Keyword(s):  
Population Structure ◽  
Standard Length ◽  
Water Levels ◽  
Maturity Stage ◽  
Migratory Fish ◽  
Initial Development ◽  
Relationship Length ◽  
Length Relationship ◽  
First Maturity ◽  
Migratory Fishes

Migratory fishes have been seriously impacted by the building of reservoirs and because of the negative effects of these projects such as the interruption of migratory routes, reduction or elimination of spawning/feeding areas, and initial development can influence the population structure the migratory fishes, resulting in reduction in abundance. Leporinus piau is migratory fish widely distributed in the watersheds of the Brazilian semiarid             and it is of importance for artisanal and sport fishing. The goal of the study was to evaluate the population structure and reproductive dynamics of the migratory species Leporinus piau in the Pau dos Ferros Reservoir, which is located in the semiarid region of Brazil. The CPUE, length structure, length-weight relationship, length at first maturity, sex ratio, gonad development and IGS were analyzed. Collections were performed quarterly between February 2011 and November 2012 using gillnets. The captured fish were counted; the standard length (cm) and total weight (g) were measured, and dissected to determine the sex and gonad maturity stage. The rainfall and reservoir water levels were recorded, and their correlations with the reproductive period and CPUE were analyzed. A total 549 individuals were captured. The average CPUE varied between 0.0259 individuals/m2*h (May/2011) and 0.0008 individuals/m2*h (August/2012), and significant differences were observed; however, significant correlations were not observed between rainfall and reservoir levels. The standard length varied between 5.9 cm and 20.7 cm, and the weight varied between 4.16 g and 271.5 g. A histogram analysis revealed that the 5-10 cm standard length class was the most abundant for juveniles and that the 10-15 cm class was the most abundant for adult females and males. The weight-length relationship was best fit by the equation log10Wt = -1.57711 + 3.00707 Log10 Ls, and the species presented isometric growth. The estimated length at first maturity was 12.76 cm. A total of 148 males and 82 females were collected (1.81:1, M:F), and these values were significantly different. The highest GSI was observed in February 2011 for both females (10.69) and males (5.72), and the GSI was significantly and positively correlated with rainfall. We concluded that the L. piau population is established in the reservoir and found that its reproduction period occurred during the rainy season between February and May.

scholarly journals Kebijakan Proteksi Anak Jalanan di Kota Yogyakarta Menurut Perspektif Maqasid Syariah

2020 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Khoirul Ummatin
Keyword(s):  
Social Problem ◽  
Urban Areas ◽  
Islamic Law ◽  
Street Children ◽  
City Government ◽  
Financial Difficulties ◽  
Number Of Factors ◽  
Children And Parents ◽  
The Relationship ◽  
Yogyakarta City

The problem of street children is a social problem that often occurs in urban areas. We may often meet many children who are on the streets. Such a scene is influenced by a number of factors that cause children to suffer in life on the streets, such as family financial difficulties or pressure from poverty, parental disharmony, and special problems regarding the relationship between children and parents. The existence of street children is often a problem for various parties both from family, community and government. In overcoming the problem, the Yogyakarta city government contributed to provide a solution by issuing regional regulations related to the handling of street children, the regulation considers many aspects such as replacing repressive approaches or forced withdrawal then becoming a humane (persuasive) approach to achieving mutual prosperity. By referring to these objectives, it is appropriate to implement a policy that needs to be based on the concept of maqasid sharia which is a study of Islamic law in establishing a law that must be accompanied by goals which are shar'i (human benefit).

The influence of unilateral supplier transaction-specific investments on international buyer opportunism: empirical findings from local suppliers in China

2020 ◽  
Vol 37 (2) ◽  
pp. 213-239 ◽  
Author(s):  
Lei Wang ◽  
Chun Zhang ◽  
Jun Li ◽  
Dong Huo ◽  
Xing Fan
Keyword(s):  
Emerging Market ◽  
Multiple Informants ◽  
Supplier Relationships ◽  
Content Type ◽  
Relationship Length ◽  
Cross Border ◽  
Specific Investments ◽  
Using Data ◽  
The Relationship

PurposeThis study examines how unilateral supplier transaction-specific investments (TSIs), directly and indirectly, influence international buyer opportunism and the extent to which detailed contracts enable suppliers to safeguard against international buyer opportunism. The study also examines whether relationship length affects the efficacy of detailed contracts in cross-border outsourcing relationships.Design/methodology/approachThe hypotheses are tested by using data collected from multiple informants working for 229 manufacturing suppliers in China. Multiple regression with a three-way interaction is used to test the hypotheses.FindingsUnilateral supplier TSIs encourage international buyer opportunism through increased supplier dependence. Contract specificity negatively moderates the effect of supplier dependence on international buyer opportunism. This moderating effect is stronger in long-term cross-border buyer–supplier relationships than in short-term ones.Originality/valueThe current study extends the cross-border outsourcing literature by examining how emerging-market suppliers in a weak power position can proactively safeguard against international buyer opportunism by using detailed contracts. Our findings show that supplier dependence mediates the relationship between unilateral supplier TSIs and international buyer opportunism; detailed contracts, however, can help dependent suppliers safeguard against international buyer opportunism. In particular, the findings highlight the importance of long-term buyer–supplier relationships that enhance the efficacy of detailed contracts.

Corporate failure prediction models in the twenty-first century: a review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Veganzones ◽  
Eric Severin
Keyword(s):  
Prediction Models ◽  
Failure Prediction ◽  
First Century ◽  
Evaluation Metrics ◽  
Prediction Methods ◽  
Content Type ◽  
Corporate Failure ◽  
Twenty First Century ◽  
Definition Of ◽  
Corporate Failure Prediction

Purpose Corporate failure remains a critical financial concern, with implications for both firms and financial institutions; this paper aims to review the literature that proposes corporate failure prediction models for the twenty-first century. Design/methodology/approach This paper gathers information from 106 published articles that contain corporate failure prediction models. The focus of the analysis is on the elements needed to design corporate failure prediction models (definition of failure, sample approach, prediction methods, variables and evaluation metrics and performance). The in-depth review creates a synthesis of current trends, from the view of those elements. Findings Both consensus and divergences emerge regarding the design of corporate failure prediction models. On the one hand, authors agree about the use of bankruptcy as a definition of failure and that at least two evaluation metrics are needed to examine model performance for each class, individually and in general. On the other hand, they disagree about data collection procedures. Although several explanatory variables have been considered, all of them serve as complements for the primarily used financial information. Finally, the selection of prediction methods depends entirely on the research objective. These discrepancies suggest fundamental advances in discovery and establish valuable ideas for further research. Originality/value This paper reveals some caveats and provides extensive, comprehensible guidelines for corporate failure prediction, which researchers can leverage as they continue to investigate this critical financial subject. It also suggests fruitful directions to develop further experiments.

scholarly journals Fin Length and Total Length Relationships of Silky Shark Carcharhinus falciformis Landed at Tanjung Luar Fish Landing Port, West Nusa Tenggara, Indonesia

2020 ◽  
Vol 147 ◽  
pp. 02011
Author(s):  
Selvia Oktaviyani ◽  
Wanwan Kurniawan ◽  
Fahmi
Keyword(s):  
Sexual Maturity ◽  
Minimum Size ◽  
Pectoral Fin ◽  
Dorsal Fin ◽  
Total Length ◽  
Length Relationship ◽  
Silky Shark ◽  
Valuable Product ◽  
The Relationship ◽  
Fin Length

Shark fins are a very valuable product for international trade. This study aims to obtain the equations describing the relationship between fin length and the total length of silky shark. Using the total length at sexual maturity (Lm), the equation is then used to estimate the fin length associated with this Lm, which can then be included in the recommendation for international shark fin trades. Data collection was carried out from March 2018 to February 2019 at Tanjung Luar Fish Landing Port, West Nusa Tenggara. All data were collected from 2,837 individuals of silky sharks, consisting of 1,416 females and 1,421 males. The total length of silky shark ranges from 61 to 282 cm for females and 18-283 cm for males. The relationships of first dorsal fin length and total length is DFL=2.0151+0.1243 TL (both sexes). Furthermore, the relationships of pectoral fin length and total length were found to be PFL=-8.0098+0.2127 TL (both sexes). The first dorsal fin length and pectoral fin length at the time the silky shark sexually matures were 23 cm and 35 cm, respectively. This fin-total length relationship can be used by the fisheries authority to determine the allowed minimum size of silky shark fins for export.

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