Publicação
The impact of the financial crisis on the financial constraints of portuguese small and medium enterprises
| Resumo: | With the Portuguese financial crisis, companies had to struggle to be able to overcome the difficulties. Some were able to manage those difficulties, but others did not have the possibility to maintain their activity and had to close the doors. But how were their financial constraints affected? What was the impact that the crisis had on small and medium enterprises (SMEs)? To answer these questions, this study analyses the impact of the recent financial crisis and the sovereign credit rating downgrade of 2011 on the financial constraints of Portuguese SMEs, in a way to understand the difficulties that they faced (or still face) after the crisis. In this dissertation is used the Erel, Jang and Weisbach (2015) approach since their analysis also focus only private firms. According to their methodology, three hypotheses should be tested based on the cash flow sensitivity of cash, the cash flow sensitivity of investment and cash holdings. If a firm is financially constrained, these factors should increase. In this case, the results obtained are not the expected because the three hypothesis purposed are all rejected, indicating that private firms and, more specifically, SMEs were not financially constrained after the financial crisis and the Portuguese sovereign credit rating downgrade in 2011. However, this may not mean that companies were well, but instead that they were even worse than expected, since they did not have the possibility to save cash to finance future investments, nor to retain the cash obtained from the cash inflows or even were not able to use their cash flows to invest. |
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| Autores principais: | Castro, Joana Barroso Barbosa |
| Assunto: | SMEs Financial constraints Cash holdings Cash flow sensitive of cash Cash flow sensitivity of investment Financial crisis Sovereign credit rating PMEs Restrições financeiras Acumulação de liquidez Sensibilidade de caixa ao cash flow Sensibilidade do investimento ao cash flow Crise financeira Rating do crédito soberano Ciências Sociais::Economia e Gestão |
| Ano: | 2015 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| Resumo: | With the Portuguese financial crisis, companies had to struggle to be able to overcome the difficulties. Some were able to manage those difficulties, but others did not have the possibility to maintain their activity and had to close the doors. But how were their financial constraints affected? What was the impact that the crisis had on small and medium enterprises (SMEs)? To answer these questions, this study analyses the impact of the recent financial crisis and the sovereign credit rating downgrade of 2011 on the financial constraints of Portuguese SMEs, in a way to understand the difficulties that they faced (or still face) after the crisis. In this dissertation is used the Erel, Jang and Weisbach (2015) approach since their analysis also focus only private firms. According to their methodology, three hypotheses should be tested based on the cash flow sensitivity of cash, the cash flow sensitivity of investment and cash holdings. If a firm is financially constrained, these factors should increase. In this case, the results obtained are not the expected because the three hypothesis purposed are all rejected, indicating that private firms and, more specifically, SMEs were not financially constrained after the financial crisis and the Portuguese sovereign credit rating downgrade in 2011. However, this may not mean that companies were well, but instead that they were even worse than expected, since they did not have the possibility to save cash to finance future investments, nor to retain the cash obtained from the cash inflows or even were not able to use their cash flows to invest. |
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