Implicaciones Financieras de la Legislación Concursal: una Comparativa Europea

El análisis de la reacción de los títulos de las empresas ante declaraciones legales de insolvencia ha sido desarrollado ampliamente en la literatura financiera. En este trabajo se adopta un enfoque diferente al tradicional estudio de eventos, tratando de contrastar si la reacción de los mercados viene condicionada por la orientación de la legislación concursal que regula las situaciones de insolvencia empresarial. Para ello se realiza un análisis con una muestra que incluye empresas con problemas de insolvencia en Alemania, España, Francia y el Reino Unido entre 1990 y 2002. Los resultados permiten concluir que la valoración de los títulos de las empresas se ve condicionada por el tipo de legislación concursal. Además, se contrasta cómo las empresas bajo sistemas más orientados hacia la protección de los acreedores (Reino Unido y Alemania antes de la reforma de 1994) presentan rentabilidades negativas mayores, debido a la transferencia de riqueza que se produce desde los accionistas hacia los aportantes de fondos ajenos a la empresa.The reaction of equity returns before bankruptcy filings has been developed widely in financial literature. Traditionally, event study methodology has been used in this kind of studies despite its limitations. Therefore, we propose a different approach contrasting if the reaction of equity returns is correlated with the different bankruptcy codes among countries. We develop an analysis with a sample that includes companies with insolvency problems in Germany, Spain, France and the United Kingdom from 1990 to 2002. The results allow us to conclude that the type of bankruptcy law affects the valuation of equity. In addition, we show how the companies under creditor-oriented procedures (United Kingdom and Germany before the 1994 reform) have greater negative returns, due to the wealth transference that takes place from the shareholders towards the bondholders

Financial crisis and determinants of the capital structure of spanish maritime transport firms

The purpose of this article is to analyze how the financial crisis affects the determinants of the capital structure of Spanish maritime transport firms according to both the trade-off and pecking order theories. Additionally, we test whether these effects differ between short and long-term debts. Using a sample of 225 firms (1,805 observations) between 2001 and 2015, we find that firms? liquidity and profitability are the main drivers of leverage before the crisis, whereas, during the crisis, leverage is also explained by non-debt tax shields and the level of tangible assets. Besides, our results show that the capital structure decisions of Spanish maritime transport firms are mainly determined by the pecking order theory, especially during the crisis. In this way, the pecking order theory plays an important role on total and short-term debts both before and during the crisis. However, the pecking order theory is only relevant in explaining long-term debt during the crisis. Before the crisis, there are no conclusive results about whether long-term debt is determined by the trade-off or the pecking order theory.The authors would like to thank University of Cantabria Foundation for Education and Research in the Financial Sector (UCEIF Foundation) for financial support

Coverage of financing deficit in firms in financial distress under the pecking order theory

ABSTRACT: The financing decisions adopted by firms in financial distress are very important because most of the strategy decisions such as investments, market entry, or product diversification are considerably affected by the financial constraints faced by them. However, these decisions are still not well known and empirical evidence about firms in financial distress is controversial. Previous studies do not find support for either the trade-off theory or the pecking order theory, which explain the financial decisions of healthy firms. Distressed firms frequently have to use all of their available financial resources to cover their financing deficit. This could give rise to a concave quadratic relationship between fi nancing defi cit and net debt issued, which might well explain the ambivalent results about the financial decisions of these firms. To analyze this quadratic relationship, which has not been studied previously, we perform an empirical analysis on a sample of 3,337 listed firms from Germany, Canada, the United States, France, Italy and the United Kingdom. Our results show that the pecking order theory does not appear to have a higher explanatory power in healthy firms. Moreover, the hierarchy suggested by the pecking order theory is not totally applicable in firms in financial distress. Our results show that as financing deficit grows, these firms use debt decreasingly, which gives rise to a concave quadratic relationship between financing deficit and net debt issued. This suggests that firms in financial distress have diffi culty issuing new debt. Our results also show that firms in financial distress have a greater probability of issuing equity. Therefore, these fi rms can use equity financing as an alternative to debt issuance

The single supervision mechanism and contagion between bank and sovereign risk

The objective of this article is to analyse how the Single Supervision Mechanism (SSM), the first pillar of the European Banking Union, affects contagion between bank and sovereign risk in the eurozone. Additionally, we test whether this contagion is transmitted from banks to sovereigns or vice versa, and how this transmission differs before and after the SSM. On the one hand, using quarterly data from 80 banks and 13 eurozone countries over the period 2009?2016 (2441 observations), we do not find solid evidence that the SSM reduces contagion from sovereign risk to banks' stock returns. On the other hand, the analysis of credit default swap (CDS) spreads comprises quarterly data from 25 banks and 10 eurozone countries between 2009 and 2016 (771 observations). We find that the announcement of the SSM in March 2013 reduces contagion between bank and sovereign CDS spreads. Additionally, before the announcement of the SSM, an increase in sovereign risk does not alter contagion. However, after this announcement, an increase in sovereign risk leads to lower contagion. Therefore, the announcement of the SSM has an immediate effect on CDS spreads, while there is not enough evidence for banks' stock returns

Investment decisions of companies in financial distress.

ABSTRACT: This paper analyzes the influence of financial distress on the investment behavior of companies. The analysis includes companies from Germany, Canada, Spain, France, Italy, UK and USA, which cover a wide spectrum of different institutional environments. The methodology used is panel data estimation using the Generalized Method of Moments (System-GMM), thereby allowing control of both unobservable heterogeneity and the problems of endogeneity in explanatory variables. The results show that the influence of financial distress on investment is different according to the investment opportunities available to companies. So, companies in difficulties with fewer opportunities have the greatest propensity to under-invest, while firms in difficulties with better opportunities do not present different investment behavior than healthy companies

IDE, Spillovers Technologiques et Performances Exportatrices des Économies Émergentes et en Développement

Foreign direct investments could be a privileged instrument for the mitigation of the technological gap, the dynamization of technological and industrial catch- up and the consolidation of the technological and scientific content of national industrial production, in addition to the modernization of productive apparatus, the expansion of industrial exports, and the celerity of their technological rise in the economies in a position of industrial takeoff. The internationalization of production favored by the rise of global value chains, as part of the process of international segmentation of production processes, has undeniably propelled the emergence of new industrial specializations and the restructuring of organizational models of production, namely in emerging countries as well as in developing countries, based on a heap of factors of attractiveness and exploitation of factorial and productive advantages, both comparative and competitive. The objective of this paper is to highlight the factors that motivate the choices and scenarios for the redeployment of production sites at the  international scale, while measuring the impact of inward FDI on the scope of the export performance of host economies, by exploring the resulting effects on the level of industrial competitiveness, creative, research and development activities and inventive capabilities, total factor productivity, externalities and the absorptive capacity of technology transfer in the local productive system, through the ordinary least squares methodology over an analytical span of nearly three decades and a panel of 10 emerging and developing economies.Les investissements directs étrangers pourraient incarner un instrument privilégié pour l’atténuation du gap technologique, la dynamisation du rattrapage technologique et industriel et la consolidation du contenu technologique et scientifique de la production industrielle, outre la modernisation de l’appareil productif, l’expansion des exportations industrielles et la célérité de leur montée en gamme technologique dans les économies en position de décollage industriel. L’internationalisation de la production favorisée par l’essor des chaînes de valeur mondiales, s’inscrivant dans la segmentation internationale des processus productifs, a indéniablement  propulsé l’émergence des nouvelles spécialisations industrielles et la restructuration des modèles organisationnels de la production, nommément  dans les pays émergents comme ceux en développement, en s’appuyant sur une ribambelle de facteurs d’attractivité et d’exploitation d’avantages factoriels et productifs aussi bien comparatifs que concurrentiels. L’objectif de ce papier est de mettre en évidence les dessous motivant les choix et les scénarios de redéploiement des sites de production à l’échelle internationale, tout en mesurant l’impact des IDE entrants sur la portée des performances exportatrices des économies d’accueil, en sillonnant  les effets qui en découlent afférents au niveau de compétitivité industrielle, les activités créatives,  de recherche et développement  et d’inventivité, la productivité globale des facteurs,  les externalités et la capacité d’absorption du transfert technologique dans le tissu productif local, à travers la mobilisation de la méthodologie des moindres carrés ordinaires portant sur une étendue analytique de près de trois décennies et  un panel de 10 économies émergentes et en développement

La competitividad en el mercado de fondos de inversión: efectos de su desarrollo sobre la rentabilidad y riesgo de los intermediarios financieros españoles

RESUMEN. El objetivo de este trabajo es analizar los efectos que el desarrollo de los fondos de inversión ha podido provocar sobre el riesgo de las entidades financieras, además de contrastar si la reducción de los márgenes de intenmediación puede ser compensada mediante el cobro de otros servicios financieros, tales como la comercialización de fondos de inversión. Por otra parte, la concentración de este mercado en los principales grupos financieros y la evidencia de economías de escala en la gestión de los mismos, plantean dudas sobre su competitividad perfecta, en favor de hipótesis colusorias entre los agentes participantes.ABSTRACT. The objective of this work is to analyze the effects that the development of mutual funds has been able to provoke over the risk of the financial entities, as well as contrasting whether the reduction of the intenmediation margins can be compensated by means of the collection of other financial services, such as the commercialization of mutual funds. On the other hand, the concentration of this market in the principal financial groups and the evidence of economies of scale in their management, leaves some doubt over its pertect competitiveness. In favour of collusive hypothesis between the participant agents

A new approach to the analysis of monetary policy transmission through bank capital.

The purpose of this article is to quantify how bank capital determines the effects of mone- tary policy on bank lending. Additionally, we test how these effects differ during monetary contractions and expansions. Using a sample of 3,028 European banks between 1999 and 2012, we find that the reduction in loans caused by monetary restrictions is similar across banks regardless of their capital. In addition, during monetary expansions, banks increase their loan supply more as they become better capitalized. Contrary to previous studies, there are differences in the monetary policy transmission through capital only during ex- pansionary monetary regimes. These results are relevant because previous studies have not measured how the marginal effect of monetary policy on the growth of loans varies with the value of capital. We contribute to the existing literature by using a new approach that quantifies this marginal effect, which considerably improves the interpretation of statisti- cal results from models that include continuous variable interactions and allows a better understanding of the role of bank capital in the transmission of monetary shocks

Trade credit, sovereign risk and monetary policy in Europe

ABSTRACT: The purpose of this article is to analyze how sovereign risk influences the use of trade credit, both directly and through monetary policy. In addition, we test whether these effects differ during the crisis as compared to before the crisis. Using a sample of 45,864 Eurozone firms (2005-2012), we find that trade credit received increases when sovereign risk becomes higher, but only before the crisis. However, during the crisis, trade credit supply decreases as sovereign risk increases. Additionally, monetary restrictions only lead to an increase in trade credit in low or moderate sovereign risk countries

Crisis in microfinance institutions: identifying problems

ABSTRACT: This article empirically analyses the reasons for crises in microfinance institutions (MFIs), using a sample of 832 MFIs from 74 countries for the period 2003-2011. The methodology used is logit analysis with panel data. The main results show that both internal and external factors influence the probability of a crisis. We find different factors that reduce the likelihood of a crisis (company’s performance, country’s economic growth, political stability and existence of a private credit bureau). On the other hand, excessive liquidity, a higher proportion of deposits over loans and more loans per employee all increase the probability of a crisis