Constraints of Spanish Insolvency Law. A predictive bankruptcy model for Spanish industrial SMEs (2007-2015)

Salvador Ortí-Camallonga ()
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Salvador Ortí-Camallonga: Department of Finance, University of Valencia, Spain

No 2018/01, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: Why almost 90% of Spanish SMEs that declare insolvency end up in liquidation? Academic works on insolvency focus either on legal terms – normative bias, impact on business’ death rate, and contrast to internal restructuring processes, to name a few – or on financial aspects – especially bankruptcy predictive models – . This work argues that a combined approach could be elucidating. For this purpose, it configures a predictive model – inspired on Atlman’s z-score – for Spanish SMEs of industrial sectors for the period 2007-2015. This investigation argues that operative difficulties can be detected well in advance to official declaration of insolvency; and provides specific evidence of Spanish Law constraints.

Keywords: Insolvency Proceedings; Spanish SMEs; Bankruptcy forecast; Logistic Regression; Financial Distress (search for similar items in EconPapers)
JEL-codes: G17 G34 K10 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2018
New Economics Papers: this item is included in nep-cfn, nep-eur and nep-law
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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2018/01

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