Diagnosis of the Domino Effect in Bankruptcy Situations Through Positioning Maps and Their Evolution 10 Years Later

Datos Bibliográficos

ID16910941
AutoresJosep Patau (0000-0003-0544-9053, Universitat Pompeu Fabra, autor de correspondencia), Antonio Somoza, Antonio Somoza López (0000-0002-0501-4028, Universitat de Barcelona), Salvador Torra (0000-0002-8786-8800, Universitat de Barcelona)
Año2020
Volumen10
Número4
Fecha de publicación2020-10-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaSAGE Open (JOURNAL)
Identificadores de la revistaISSN: 2158-2440 • E-ISSN: 2158-2440
EditorialSAGE Publications (PUBLISHER • US)
DOI10.1177/2158244020965250
OpenAlexW3115299080
IdiomaEN
Referencias citadas30

This work aims to describe how the insolvency of a firm affects other business creditors. Through a sample of small and medium entities in Catalonia for the biennium 2004–2005, the situation of creditors before and after the legal event (insolvency proceedings) has been studied. The results confirm the existence of a substantial change in the composition of the financial structure of these firms (substitution of long-term debt by short-term debt; decrease in solvency and profitability, increase in financial charge, among others) and, therefore, the contagion of liquidity problems. The study covers 2 years before and after the insolvency and is dynamic in the sense that it highlights how the creditors change their source of finance and the ending situation. The main contributions of the object are the effect of insolvency on other companies closely related and also the technique used—multidimensional scaling

Bankruptcy · Business · Creditor · Debt · Economics · Financial system · Insolvency · Market liquidity · Monetary economics · Profitability index · Solvency · Corporate Finance and Governance · Corporate Insolvency and Governance · Financial Distress and Bankruptcy Prediction · Finance