Capital Structure across Italian Regions: The Role of Financial and Economic Differences

Autor: Filippo Di Pietro, María-José Palacín-Sánchez, Maria Elena Bontempi, Reyes Samaniego-Medina
Přispěvatelé: di Pietro, Filippo, Bontempi, Maria Elena, Palacín-Sánchez, María-José, Samaniego-Medina, Reyes, Universidad de Sevilla. Departamento de Economía Financiera y Dirección de Operaciones
Jazyk: angličtina
Rok vydání: 2019
Předmět:
Leverage (finance)
Financial sector development
Financial development
capital structure
Capital structure
financial development
Geography
Planning and Development
TJ807-830
Regional financial sector
Financial crisis
SMEs
Management
Monitoring
Policy and Law
TD194-195
Renewable energy sources
panel data
Banking concentration
regional financial sector
financial crisi
0502 economics and business
GE1-350
Costs of funding
Economic stability
banking concentration
Panel data
Finance
050208 finance
Regional economic resilience
Environmental effects of industries and plants
regional economic resilience
Renewable Energy
Sustainability and the Environment
business.industry
financial crisis
05 social sciences
SME
Market concentration
Environmental sciences
costs of funding
Business
050203 business & management
Financial sector
Zdroj: idUS. Depósito de Investigación de la Universidad de Sevilla
instname
Sustainability
Volume 11
Issue 16
Sustainability, Vol 11, Iss 16, p 4474 (2019)
Popis: The objective of this article is to analyse how regional financial and economic differences influence the capital structure decisions of small and medium-sized enterprises (SMEs). Specifically, this paper considers the regional financial and economic differences in four ways: the development of the financial sector in the region, bank market concentration, the financial cost of obtaining funds, and regional economic development. For this purpose, we used unbalanced panel data from 26,504 SMEs across the 20 Italian regions and over the period from 2004 to 2010. This work is completed with an analysis of a no-crisis (2004&ndash
2007) and a crisis period (2008&ndash
2010). The results show that the regional differences in the degree of financial sector development, banking concentration, and local economic situations have a significant impact on the leverage level of SMEs, while the cost of obtaining funds is only relevant during a period of economic stability. These results suggest that insights can be derived from data disaggregation at the regional level inside the same country. These regional divergences in the capital structure of SMEs could influence regional economic resilience.
Databáze: OpenAIRE
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