Determinants and consequences of SME insolvency risk during the pandemic

Kaya, Orcun

doi:10.1016/j.econmod.2022.105958

Please use this identifier to cite or link to this item: https://doi.org/10.21256/zhaw-26547

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	Determinants and consequences of SME insolvency risk during the pandemic
Authors:	Kaya, Orcun
et. al:	No
DOI:	10.1016/j.econmod.2022.105958 10.21256/zhaw-26547
Published in:	Economic Modelling
Volume(Issue):	115
Issue:	105958
Issue Date:	2022
Publisher / Ed. Institution:	Elsevier
ISSN:	0264-9993 1873-6122
Language:	English
Subjects:	Access to finance; Innovation; Insolvency risk; Pandemic; SME
Subject (DDC):	332: Financial economics 658.1: Organization and finance
Abstract:	The COVID-19 pandemic posed an existential threat to European SMEs' financial resilience with significant consequences for the European economy. Using unique firm-level data on SME financing conditions, this paper proposes a new insolvency risk measure based on survey responses. We show that SME insolvency risk increased, on average, by approximately 21% during the pandemic. Problems with finding customers and the cost of production and labor contributed notably to SME insolvency risk during this period, and SMEs also saw deterioration in their access to finance. Innovation worked as a mitigating factor during the pandemic, and innovative SMEs were more resilient, maintained their client base, and saw favorable access to bank lending. Our results point out that SME innovation can prevent the number of insolvencies from rising significantly in the long term.
URI:	https://digitalcollection.zhaw.ch/handle/11475/26547
Fulltext version:	Published version
License (according to publishing contract):	CC BY 4.0: Attribution 4.0 International
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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Kaya, O. (2022). Determinants and consequences of SME insolvency risk during the pandemic. Economic Modelling, 115(105958). https://doi.org/10.1016/j.econmod.2022.105958

Kaya, O. (2022) ‘Determinants and consequences of SME insolvency risk during the pandemic’, Economic Modelling, 115(105958). Available at: https://doi.org/10.1016/j.econmod.2022.105958.

O. Kaya, “Determinants and consequences of SME insolvency risk during the pandemic,” Economic Modelling, vol. 115, no. 105958, 2022, doi: 10.1016/j.econmod.2022.105958.

KAYA, Orcun, 2022. Determinants and consequences of SME insolvency risk during the pandemic. Economic Modelling. 2022. Bd. 115, Nr. 105958. DOI 10.1016/j.econmod.2022.105958

Kaya, Orcun. 2022. “Determinants and Consequences of SME Insolvency Risk during the Pandemic.” Economic Modelling 115 (105958). https://doi.org/10.1016/j.econmod.2022.105958.

Kaya, Orcun. “Determinants and Consequences of SME Insolvency Risk during the Pandemic.” Economic Modelling, vol. 115, no. 105958, 2022, https://doi.org/10.1016/j.econmod.2022.105958.