Impact of public guarantees on optimal debt levels following the COVID-19 pandemic: efficiency in their allocation

Baixauli Soler, J. Samuel; Lozano Reina, Gabriel; Álvarez Díez, Susana; Rodríguez-Linares Rey, Diego

Publication:
Impact of public guarantees on optimal debt levels following the COVID-19 pandemic: efficiency in their allocation

dc.contributor.author	Baixauli Soler, J. Samuel
dc.contributor.author	Lozano Reina, Gabriel
dc.contributor.author	Álvarez Díez, Susana
dc.contributor.author	Rodríguez-Linares Rey, Diego
dc.contributor.department	Organización de Empresas y Finanzas
dc.contributor.department	Métodos Cuantitativos para la Economía y la Empresa
dc.contributor.other	Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas	es
dc.contributor.other	Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Métodos Cuantitativos para la Economía y la Empresa	es
dc.date.accessioned	2024-03-18T10:08:41Z
dc.date.available	2024-03-18T10:08:41Z
dc.date.issued	2023-02-17
dc.description	© 2023, The authors. This document is made available under the CC-BY-NC 4.0 license http://creativecommons.org/licenses/by-nc /4.0/ This document is the accepted version of a published work that appeared in final form in Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad To access the final work, see DOI: https://doi.org/10.1080/02102412.2023.2177460	es
dc.description.abstract	The COVID-19 pandemic triggered a sudden drop in companies’ sales and turnover, which resulted in serious liquidity and solvency problems. In an effort to cushion these unfavourable effects, a credit guarantee plan was launched in 2020 by the Spanish Government to mitigate the effects of COVID-19 by injecting firms with liquidity. This paper seeks to analyse the impact of this public policy on SMEs’ optimal debt levels and to examine whether the allocation of this public funding has been efficiently targeted at those SMEs suffering temporary distress as a result of the pandemic. Based on a sample of 3,305 Spanish SMEs, our results show that the government’s interventionist policy swelled excess debt levels – mainly due to the increase in excess long-term debt – and deviated them from the optimum. Moreover, although these public guarantees should mostly have been aimed at SMEs experiencing a temporary decline due to COVID-19, we find that these SMEs were the least likely to receive liquidity injections.	es
dc.embargo.terms	2024-08-17
dc.format	application/pdf	es
dc.format.extent	37	es
dc.identifier.citation	Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad, 2023, Vol. 53(2), pp. 176–202
dc.identifier.doi	https://doi.org/10.1080/02102412.2023.2177460
dc.identifier.uri	http://hdl.handle.net/10201/140281
dc.language	eng	es
dc.publisher	Taylor and Francis Group	es
dc.relation	This work was supported by the Fundación Cajamurcia	es
dc.rights	info:eu-repo/semantics/openAccess	es
dc.rights	Atribución-NoComercial 4.0 Internacional	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc/4.0/	*
dc.subject	Public guarantees	es
dc.subject	Debt levels	es
dc.subject	Allocation of public guarantees	es
dc.subject	Government interventionist policy	es
dc.subject	COVID-19 pandemic	es
dc.subject	ICO	es
dc.title	Impact of public guarantees on optimal debt levels following the COVID-19 pandemic: efficiency in their allocation	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es
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