Legal environment and corporate finance: evidence from the Italian manufacturing industry

Journal of Economic Structures

Roberto Ippoliti¹  Greta Falavigna² 

[1] Faculty of Business Administration and Economics, Bielefeld University, Universitätsstraße 25, 33615, Bielefeld, Germany;Research Institute On Sustainable Economic Growth (IRCrES), National Research Council of Italy (CNR), Via Real Collegio 30, 10024, Moncalieri, Italy;

关键词: Manufacturing industry;    Corporate finance;    Institutional inefficiency;    G32;    G33;   

DOI  :  10.1186/s40008-021-00252-6

来源: Springer

【 摘 要 】

Considering the Italian manufacturing industry between 2014 and 2016 (more than 250,000 observations), this technical note analyzes the relation between the courts’ ability to enforce credit rights and the opportunity to finance business activities with trade credits instead of financial debts, delaying payments and decreasing the financial costs. According to our results, and considering mortgage foreclosure, if the time necessary to settle an insolvency case increases by 1000 days, we can expect an increase in operating debt between 3 and 11%, and a decrease of financial expenses between 3000 and 7000 Euro.

【 授权许可】

CC BY