scholarly journals “Extraordinary Administration” for Business Rescue in Italy: Admission Requirements and Value Creation

2021 ◽  
Vol 18 ◽  
pp. 367-375
Author(s):  
Pierluigi Santosuosso
Keyword(s):  
Value Creation ◽  
Financial Distress ◽  
Selection Criteria ◽  
Social Utility ◽  
Large Firms ◽  
Logistic Regression Models ◽  
Goods And Services ◽  
Admission Requirements ◽  
Research Findings ◽  
Italian Manufacturing Firms

Large Italian firms in financial distress are admitted to the business rescue procedure called “Extraordinary Administration” with a view to preserving the business as a going concern when two objective requirements are met: at least two hundred employees and debts not less than two-thirds both of total assets and revenues. This study examines whether these selection criteria are adequate to identify large firms in terms of value creation. The analysis is motivated by the idea that social utility in the rescue of large firms should not be justified only by the number of employees, but also by the worth of the goods and services created by the firms. The sample is made up of 1,581 Italian manufacturing firms and four subsamples were analyzed for the three year period 2015-2017 using a set of logistic regression models. Research findings show that highly leveraged firms eligible to go into “Extraordinary Administration” do not select large firms as measured by proxy variables that take into account value creation, such as total assets and/or revenues. On the other hand, hypothetical alternative selection criteria based on total assets and revenues identify large firms in terms of value creation but no statistical evidence was found to show how these firms are leveraged.

scholarly journals An Optimal Model of Financial Distress Prediction: A Comparative Study between Neural Networks and Logistic Regression

Risks ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 200
Author(s):  
Youssef Zizi ◽  
Amine Jamali-Alaoui ◽  
Badreddine El Goumi ◽  
Mohamed Oudgou ◽  
Abdeslam El Moudden
Keyword(s):  
Neural Networks ◽  
Logistic Regression ◽  
Financial Distress ◽  
Prediction Models ◽  
Type I ◽  
Return On Assets ◽  
Logistic Regression Models ◽  
The Face ◽  
One Year ◽  
Type Ii Errors

In the face of rising defaults and limited studies on the prediction of financial distress in Morocco, this article aims to determine the most relevant predictors of financial distress and identify its optimal prediction models in a normal Moroccan economic context over two years. To achieve these objectives, logistic regression and neural networks are used based on financial ratios selected by lasso and stepwise techniques. Our empirical results highlight the significant role of predictors, namely interest to sales and return on assets in predicting financial distress. The results show that logistic regression models obtained by stepwise selection outperform the other models with an overall accuracy of 93.33% two years before financial distress and 95.00% one year prior to financial distress. Results also show that our models classify distressed SMEs better than healthy SMEs with type I errors lower than type II errors.

scholarly journals An Empirical Test Of The View Of Inventory As A Liability IN Explaining Financial Distress

2011 ◽  
Vol 14 (2) ◽  
pp. 83 ◽  
Author(s):  
Benjamin P. Foster ◽  
M. Cathy Sullivan ◽  
Terry J. Ward
Keyword(s):  
Logistic Regression ◽  
Financial Distress ◽  
Regression Models ◽  
Empirical Test ◽  
Explanatory Power ◽  
Manufacturing Firms ◽  
Logistic Regression Models ◽  
Financially Distressed ◽  
Accounting Ratios ◽  
Extreme View

<span>This study reports a first attempt in a financial distress context to test the extreme JIT and TOC view that inventory is a liability. We compared inventory levels and the change in inventory for healthy and financially distressed manufacturing firms. We also compared the explanatory power of logistic regression models including traditional accounting ratios to that of models including accounting ratios created by viewing inventory as a liability. We found some support for the extreme view of some JIT and TOC proponents that traditional inventory should be considered a liability.</span>

EVALUATING CORPORATE-STARTUP CO-CREATION: A CRITICAL REVIEW OF THE LITERATURE

2021 ◽  
pp. 2150073
Author(s):  
ANNIKA STEIBER ◽  
SVERKER ALANGE ◽  
VINCENZO CORVELLO
Keyword(s):  
Literature Review ◽  
Critical Review ◽  
New Technologies ◽  
Large Firms ◽  
Review Of The Literature ◽  
Body Of Knowledge ◽  
Evaluation Models ◽  
Research Findings ◽  
Multi Stakeholder ◽  
Technology Startups

Partnership with startups offers large firms knowledge about, and access to new technologies. Incumbents’ emphasis on corporate-startup collaboration has therefore reached a new level and various models for corporate-startup collaboration can now be found among large enterprises. “Co-creation” between large firms and technology startups, is one of these models that increases in traction. The model is, however, under-researched and research on frameworks and metrics for evaluating the business effects from corporate-startup co-creation is scarce. The purpose of this paper is therefore to extend the existing body of knowledge by investigating frameworks and metrics for evaluating corporate-startup “co-creation” and to suggest a framework for evaluation of corporate-startup co-creation programs. A literature review on identified frameworks and metrics is presented, covering research findings on evaluation models for corporate-startup collaboration. The main finding in this paper is a “multi-stakeholder framework” for evaluating the collaboration’s results in corporate-startup co-creation models.

scholarly journals Business rescue practices in South Africa: An explorative view

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Talira Naidoo ◽  
Adnan Patel ◽  
Nirupa Padia
Keyword(s):  
South Africa ◽  
Success Rate ◽  
Financial Distress ◽  
Qualitative Interviews ◽  
Research Findings ◽  
Definition Of Success ◽  
Definition Of ◽  
Rate Of Success ◽  
The Impact ◽  
Low Rate

Business rescue proceedings attempt to rehabilitate businesses that are in financial distress. In spite of its importance, there is a seemingly low rate of success of the current business rescue regime (at just 15% as at June 2016). This article seeks to understand the issues that may be hindering the current rate of success of business rescue proceedings and provides practising accountants (in their capacity as business rescue practitioners) with a better understanding of the issues surrounding business rescue attempts. This will allow them to better perform their duties and give corporates in need of rescue a fighting chance. Through the use of qualitative interviews, the research findings show that there is a lack of clarity of the definition of success, which may be cause for concern. However, in the view of practitioners, the success rate is expected to improve with time. This study provides details on a few key insights into business rescue practices in South Africa, namely, the practitioners’ perceptions of success, their perceptions of the trust of stakeholders during the course of business rescue, their perceptions of the impact of the qualifications and experience of the business rescue practitioner, and their perceptions on the preparation of the business rescue plan.

scholarly journals A Business Failure Index Using Rank Transformation

2018 ◽  
Vol 11 (1) ◽  
pp. 56
Author(s):  
Marialuisa Restaino ◽  
Marco Bisogno
Keyword(s):  
Financial Distress ◽  
Default Risk ◽  
Global Financial Crisis ◽  
Business Failure ◽  
Failure Index ◽  
Financial Difficulties ◽  
Rank Transformation ◽  
The Global Financial Crisis ◽  
Italian Manufacturing Firms ◽  
Corporate Distress

The global financial crisis entails a renewed attention from financial institutions, academics, and practitioners to corporate distress analysis and its forecasting. This study aims to propose a model for predicting default risk based on a business failure index using rank transformation. The procedure suggested is able to capture firms&rsquo; financial difficulties and forecast bankruptcy through the construction of a failure index based on some relevant financial ratios. By means of the estimation of failure probability, it allows to classify and predict business distress in time to take mitigating action. This procedure is evaluated by some accuracy measures on a sample of Italian manufacturing firms, and is found to be a suitable instrument for preventing financial distress.

scholarly journals Entrepreneurial Opportunities of Refugees in Germany, France, and Ireland: Multiple Embeddedness Framework

2020 ◽  
Author(s):  
Aki Harima ◽  
Fabrice Periac ◽  
Tony Murphy ◽  
Salomé Picard
Keyword(s):  
Problem Solving ◽  
Value Creation ◽  
Structured Interviews ◽  
Opportunity Structure ◽  
Entrepreneurial Opportunities ◽  
Multiple Contexts ◽  
Research Findings

AbstractRecently, the entrepreneurial potential of refugees has received growing attention from scholars and policymakers. However, the literature on refugee entrepreneurship suffers from the fragmentation of previous research findings, which has been mainly attributed to the fact that refugees have heterogeneous backgrounds. Tackling this challenge, this study conceptualized the framework for the multiple embeddedness of refugee entrepreneurs by applying and extending the concept of mixed embeddedness. Based on 50 semi-structured interviews with refugee entrepreneurs who relocated to Germany, France, and Ireland, we identified six patterns in which refugees’ multiple embeddedness and their actions as entrepreneurial agencies interacted to develop entrepreneurial opportunities: (i) value creation with homeland resources, (ii) acting as transnational middleman minorities, (iii) integration facilitation, (iv) qualification transfers, (v) homeland-problem solving, and (vi) creative innovation. This study contributes to the literature on refugee entrepreneurship by considering multiple contexts in which refugees can be embedded in and by elaborating on the interactions between opportunity structure emerging within the multiple embeddedness, actions, and capabilities of refugees as entrepreneurial agencies.

scholarly journals Digitalized Interactive Platforms: Turning Goods and Services into Retail Co-Creation Experiences

2019 ◽  
Vol 11 (1) ◽  
pp. 18-23
Author(s):  
Venkat Ramaswamy ◽  
Kerimcan Ozcan
Keyword(s):  
Decision Making ◽  
Value Creation ◽  
Digital Technologies ◽  
Informational Content ◽  
Multiple Channels ◽  
Goods And Services ◽  
Hybrid Delivery ◽  
Retail Managers ◽  
The Individual ◽  
Human Actors

AbstractWith the rise of digital technologies, retailing has become a field of value co-creation. Rather than selling readymade products and services, retailers now offer means for creating value together with their customers through manifold interactions. To enable co-creation, they need to develop digital interactive platforms (DIPs) around retail-related activities. Typically, individuals engage with a retail DIP offering in their particular contexts of interactions with apps or similar components. By delving deeper into the nature of the individual interactions, hidden and untapped sources of value can be revealed. Shoppers get more engaged, and retail managers gain more insights and can design ecosystems that allow a more effective creation of “all-win more” outcomes in more profitable ways. To be successful, retailers need to incorporate a broader view of value creation into their operations. They will be successful with hybrid-delivery systems in which consumers can use a range of interface technologies across multiple channels. Being able to interact with informational content, human actors, and technical resources at different stages of the decision making and shopping process will enable rewarding shopping experiences for customers and retailers alike.

scholarly journals Composition of small and large firms’ business networks in transition economies

2008 ◽  
Vol 15 (46) ◽  
pp. 195-231 ◽  
Author(s):  
Manuel Portugal Ferreira ◽  
Dan Li ◽  
Fernando Ribeiro Serra ◽  
Sungu Armagan
Keyword(s):  
Transition Economies ◽  
Foreign Firms ◽  
Business Networks ◽  
Large Firms ◽  
Firm Level ◽  
Logistic Regression Models ◽  
The World Bank ◽  
Level Data ◽  
The Government ◽  
Formal Business

In this study, using firm level data from twenty six transition economies collected by the World Bank and the EBRD in 1999-2000, we conduct a set of logistic regression models to investigate the composition of small and large firms’ business networks. The results show that, in contrast to smaller firms, larger firms are more likely to have formal business relationships, and relationships with national and foreign financial institutions, government, and foreign firms. In addition, in a subgroup analysis of seven transition economies we show that the composition of the firms’ business networks varies substantially across countries but that the government is still a dominant client. Furthermore, we found a large variation on firms’ reliance on informal ties and the extent to which firms exchange with foreign firms.

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