Determinants of Short-term Liabilities of Financially Distressed SME-s

Galya Taseva
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Galya Taseva: Bulgarian Academy of Sciences

Business Management, 2020, issue 1 Year 2020, 5-24

Abstract: The article studies the determinants of short-term liabilities of financially distressed small and medium-sized enterprises in Bulgaria. The research is based on data from the financial statements of one hundred non-financial enterprises in different industries in the period from 2014 to 2016, provided by the National Statistical Institute. A company is defined as financially distressed if it cannot cover its short-term liabilities with its operating cash flow. By employing multiple regression analysis, we design a model, which shows the positive impact of the levels of net sales revenue, inventory, receivables from customers and suppliers and financial assets, and the negative impact of the ratio of current assets to total assets on the short-term debt of financially distressed SME-s.

Keywords: default risk; financial distress; short-term indebtedness (search for similar items in EconPapers)
JEL-codes: G30 G32 G33 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:dat:bmngmt:y:2020:i:1:p:5-24

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