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4. Publikationen School of Management and Law

Publication type:	Conference poster
Type of review:	No review
Title:	Insolvency risk of European SMEs
Authors:	Kaya, Orcun
et. al:	No
Conference details:	Qatar Centre for Global Banking and Finance Annual Conference 2021 : Challenges Facing Central Banks in the 2020s, Online, 17-18 May 2021
Issue Date:	2021
Language:	English
Subjects:	Pandemic; SME; Insolvency risk; Access to finance
Subject (DDC):	658.1: Organization and finance
Abstract:	Covid-19 pandemic poses an existential threat to European SMEs’ financial resilience with significant consequences for the European economy. Using a unique firm-level survey data on SME financing conditions and a new measurement approach, this paper focuses on the insolvency risk of European SMEs and their access to finance around pandemic. We show that SME insolvency risk increased, on average, by around 21% during the pandemic. Finding customers and the cost of production and labor have contributed notably to SME insolvency risk around this period. Heightened insolvency risk results in deterioration in expected access to finance in general. During the pandemic, though, no particular worsening is observed in access to bank lending. Overall, our results have important policy implications for designing suitable policy measures to mitigate SME liquidity shortages and avoid unnecessary insolvencies during and in the aftermath of the pandemic.
URI:	https://digitalcollection.zhaw.ch/handle/11475/23019
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute for Financial Management (IFI)
Appears in collections:	Publikationen School of Management and Law

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