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Title: | The flip side of the coin: how entrepreneurship-oriented insolvency laws can complicate access to debt financing for growth firms | Authors: | FORIER, Maren LYBAERT, Nadine CORTEN, Maarten APPERMONT, Niels STEIJVERS, Tensie |
Issue Date: | 2023 | Publisher: | SPRINGER | Source: | European Journal of Law and Economics, | Status: | Early view | Abstract: | This study examines the impact of the change towards a more debtor-friendly insolvency law on debt financing of growth firms. Prior studies rarely consider that insolvency laws not only impact entrepreneurship but can also impact the relationship between the firm and its various stakeholders. We consider the impact on the relationship with the key stakeholders of the firm, namely its creditors. Using the recent change in Belgian insolvency law as an exogenous policy shock, we investigate the changes in the use of debt for growth firms, considering the heterogeneity of debt. Our findings indicate that the financing mix for growth companies has altered after the change towards a more debtor-friendly insolvency law: they seem to be less likely to receive financing from financial institutions and trade creditors. However, we found that payments to the government and employees are delayed after the change, probably to compensate for this lack of debt financing. | Notes: | Forier, M (corresponding author), Hasselt Univ, Martelarenlaan 42, B-3500 Hasselt, Belgium. maren.forier@uhasselt.be; nadine.lybaert@uhasselt.be; maarten.corten@uhasselt.be; niels.appermont@uhasselt.be; tensie.steijvers@uhasselt.be |
Keywords: | Growth SMEs;Belgium;Credit constraints;Effectiveness of insolvency laws;K2L26 | Document URI: | http://hdl.handle.net/1942/41796 | ISSN: | 0929-1261 | e-ISSN: | 1572-9990 | DOI: | 10.1007/s10657-023-09783-8 | ISI #: | 001088977000001 | Category: | A1 | Type: | Journal Contribution |
Appears in Collections: | Research publications |
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The flip side of the coin_ how entrepreneurship-oriented insolvency laws can complicate access to debt financing for growth firms.pdf Restricted Access | Early view | 776.32 kB | Adobe PDF | View/Open Request a copy |
auteursversie.pdf Until 2024-11-01 | Peer-reviewed author version | 1.08 MB | Adobe PDF | View/Open Request a copy |
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