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Medium-sized Enterprises (MEs) are a limited number of Small and Medium-sized Enterprises (SMEs) in EU-28 countries, but they contribute greatly to value added and employment. They are also key to pursuing sustainable local development in terms of green economic growth. Because trade credit is a crucial financial source for SMEs, this article investigates the importance of trade credit for Italian MEs, and particularly for ‘green’ MEs, rather than ‘non-green’ MEs. A panel analysis is applied to 101,250 observations over the period 2010–2019. We find that green MEs rely more on trade credit than non-green MEs. Moreover, trade credit is more important for younger, smaller, less profitable, and less liquid MEs. We further show that a substitution effect between trade and banking credit exists, and that the local development level affects the demand for trade credit. Our results demonstrate that trade credit supports sustainable development more than banking credit. Financial intermediaries should therefore include green parameters in the assessment of the creditworthiness of MEs, and policymakers should consider that trade credit and financial inclusion may be important in pursuing sustainable local development and economic growth.
Maria Arcuri; Raoul Pisani. Is Trade Credit a Sustainable Resource for Medium-Sized Italian Green Companies? Sustainability 2021, 13, 2872 .
AMA StyleMaria Arcuri, Raoul Pisani. Is Trade Credit a Sustainable Resource for Medium-Sized Italian Green Companies? Sustainability. 2021; 13 (5):2872.
Chicago/Turabian StyleMaria Arcuri; Raoul Pisani. 2021. "Is Trade Credit a Sustainable Resource for Medium-Sized Italian Green Companies?" Sustainability 13, no. 5: 2872.
This paper examines the main determinants of corporate euro-bond spread. We analyse a large sample of corporate euro-country bonds over the period May 2005 -January 2012, considering three sub-periods: May 2005- July 2007 (pre-crisis period), August 2007-April 2010 (worldwide financial crisis) and May 2010-January 2012 (European sovereign debt crisis). We show that both liquidity risk and risk related to the country of the issuing firms affect corporate bond spread. We also find that the market yield of corporate bonds issued in the main European countries is, other things being equal, strongly influenced by the risk of the corresponding sovereign bonds and Credit Default Swap (CDS). Finally, we compare the yields of bonds issued by banks with those of bonds issued by firms from other sectors and find that the spread, other things being equal, is significantly higher for banks. These findings may have operating implications for market activity, regulators and policy makers.
Maria Cristina Arcuri; Gino Gandolfi; Manou Monteux; Giovanni Verga. What Factors Influence European Corporate Bond Spread? International Journal of Business and Management 2020, 15, p87 .
AMA StyleMaria Cristina Arcuri, Gino Gandolfi, Manou Monteux, Giovanni Verga. What Factors Influence European Corporate Bond Spread? International Journal of Business and Management. 2020; 15 (4):p87.
Chicago/Turabian StyleMaria Cristina Arcuri; Gino Gandolfi; Manou Monteux; Giovanni Verga. 2020. "What Factors Influence European Corporate Bond Spread?" International Journal of Business and Management 15, no. 4: p87.
Public credit guarantee schemes are set up with the purpose of facilitating access to credit by Small and Medium-sized Enterprises (SMEs). The aim of the paper is to study the effectiveness and impacts of the Italian Central Guarantee Fund (CGF)’s activity, one of the main public guarantee schemes in Europe. This is even more important in the light of the 2018 CGF reform. Analyzing a sample which includes all the guarantees issued by the CGF from 2012 to 2018 on loans made to manufacturing companies, we find that the CGF methodology is partially able to capture the variables affecting the probability of default of SMEs. The CGF scores before the reform show poor capability to forecast risk in the medium term, above all for micro and small enterprises. The post-reform model shows better forecasting ability and a greater consistency with the Z’’-score, one of the most recognized model in the distress prediction literature. The new CGF model may indirectly control the behaviour of lenders and first-level guarantors. In particular, our findings show that the probability of default on exposures covered by a mutual guarantee institution and counter-guaranteed by the CGF is lower than the probability of default of loans granted by a bank and directly guaranteed by the CGF. As a consequence, the direct guarantees need to be more monitored by the CGF and potential effects on the bank behaviour may derive, strengthening ECB’s supervision activities.
Maria Cristina Arcuri; Lorenzo Gai; Federica Ielasi. Public Credit Guarantee Schemes in Supporting SMEs: An Evaluation of Effectiveness and Impacts. International Journal of Business and Management 2019, 15, p174 .
AMA StyleMaria Cristina Arcuri, Lorenzo Gai, Federica Ielasi. Public Credit Guarantee Schemes in Supporting SMEs: An Evaluation of Effectiveness and Impacts. International Journal of Business and Management. 2019; 15 (1):p174.
Chicago/Turabian StyleMaria Cristina Arcuri; Lorenzo Gai; Federica Ielasi. 2019. "Public Credit Guarantee Schemes in Supporting SMEs: An Evaluation of Effectiveness and Impacts." International Journal of Business and Management 15, no. 1: p174.