Fostering SME survival through insolvency proceedings: a legitimacy perspective on retrenchment, age, and firm-specific distress

IF 6.5 1区经济学 Q1 BUSINESS

Small Business Economics Pub Date : 2024-02-10 DOI:10.1007/s11187-024-00874-7

Rachid Achbah, Marc Fréchet

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Abstract

This study examines the interaction between insolvency proceedings and strategic variables and their relationship with firm survival. Unlike previous research, this study considers the firm’s legal status, including insolvency proceedings, and fills a gap in the literature by considering legal considerations in business studies. Adopting a legitimacy perspective, we employ a Cox proportional hazards model to construct a survival model based on a theoretical framework encompassing insolvency proceedings retrenchment, firm age, and causes of financial distress. Our sample consists of French SMEs facing financial difficulties. The findings reveal that initiating insolvency proceedings is negatively associated with firm survival. However, retrenchment of employees or assets during insolvency proceedings is associated with a higher likelihood of survival. Contrary to expectations, firm age showed a negative association with firm survival during the insolvency proceedings. Moreover, the study revealed a positive association between insolvency proceedings and firm survival in cases of firm-specific financial distress. This research provides new insights into the relationship between insolvency proceedings and firm survival.

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通过破产程序促进中小企业生存：从合法性角度看裁员、年龄和企业特有的困境

本研究探讨了破产程序与战略变量之间的相互作用及其与企业生存的关系。与以往研究不同的是，本研究考虑了公司的法律地位，包括破产程序，并在商业研究中考虑了法律因素，从而填补了文献空白。我们从合法性的角度出发，采用考克斯比例危险模型，在包含破产程序裁员、企业年龄和财务困境原因的理论框架基础上构建了一个生存模型。我们的样本包括面临财务困境的法国中小企业。研究结果表明，启动破产程序与企业生存负相关。然而，在破产程序中裁员或削减资产与更高的存活可能性相关。与预期相反，公司年龄与公司在破产程序期间的存活率呈负相关。此外，研究还显示，在公司特定财务困境的情况下，破产程序与公司存续之间存在正相关。这项研究为破产程序与公司存续之间的关系提供了新的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Small Business Economics Multiple-

CiteScore

14.10

自引率

9.40%

发文量

124

期刊介绍： Small Business Economics: An Entrepreneurship Journal (SBEJ) publishes original, rigorous theoretical and empirical research addressing all aspects of entrepreneurship and small business economics, with a special emphasis on the economic and societal relevance of research findings for scholars, practitioners and policy makers. SBEJ covers a broad scope of topics, ranging from the core themes of the entrepreneurial process and new venture creation to other topics like self-employment, family firms, small and medium-sized enterprises, innovative start-ups, and entrepreneurial finance. SBEJ welcomes scientific studies at different levels of analysis, including individuals (e.g. entrepreneurs'' characteristics and occupational choice), firms (e.g., firms’ life courses and performance, innovation, and global issues like digitization), macro level (e.g., institutions and public policies within local, regional, national and international contexts), as well as cross-level dynamics. As a leading entrepreneurship journal, SBEJ welcomes cross-disciplinary research. Officially cited as: Small Bus Econ