Legal environment and corporate finance: evidence from the Italian manufacturing industry

Abstract Considering the Italian manufacturing industry between 2014 and 2016 (more than 250,000 observations), this technical note analyzes the relation between the courts’ ability to enforce credit rights and the opportunity to finance business activities with trade credits instead of financial de...

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Autores principales:	Greta Falavigna, Roberto Ippoliti
Formato:	article
Lenguaje:	EN
Publicado:	SpringerOpen 2021
Materias:	Manufacturing industry Corporate finance Institutional inefficiency Economic growth, development, planning HD72-88 Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/0f64555615464eef9cda966cf74bb05d
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spelling	oai:doaj.org-article:0f64555615464eef9cda966cf74bb05d2021-11-08T10:45:43ZLegal environment and corporate finance: evidence from the Italian manufacturing industry10.1186/s40008-021-00252-62193-2409https://doaj.org/article/0f64555615464eef9cda966cf74bb05d2021-11-01T00:00:00Zhttps://doi.org/10.1186/s40008-021-00252-6https://doaj.org/toc/2193-2409Abstract Considering the Italian manufacturing industry between 2014 and 2016 (more than 250,000 observations), this technical note analyzes the relation between the courts’ ability to enforce credit rights and the opportunity to finance business activities with trade credits instead of financial debts, delaying payments and decreasing the financial costs. According to our results, and considering mortgage foreclosure, if the time necessary to settle an insolvency case increases by 1000 days, we can expect an increase in operating debt between 3 and 11%, and a decrease of financial expenses between 3000 and 7000 Euro.Greta FalavignaRoberto IppolitiSpringerOpenarticleManufacturing industryCorporate financeInstitutional inefficiencyEconomic growth, development, planningHD72-88Economics as a scienceHB71-74ENJournal of Economic Structures, Vol 10, Iss 1, Pp 1-16 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Manufacturing industry Corporate finance Institutional inefficiency Economic growth, development, planning HD72-88 Economics as a science HB71-74
spellingShingle	Manufacturing industry Corporate finance Institutional inefficiency Economic growth, development, planning HD72-88 Economics as a science HB71-74 Greta Falavigna Roberto Ippoliti Legal environment and corporate finance: evidence from the Italian manufacturing industry
description	Abstract Considering the Italian manufacturing industry between 2014 and 2016 (more than 250,000 observations), this technical note analyzes the relation between the courts’ ability to enforce credit rights and the opportunity to finance business activities with trade credits instead of financial debts, delaying payments and decreasing the financial costs. According to our results, and considering mortgage foreclosure, if the time necessary to settle an insolvency case increases by 1000 days, we can expect an increase in operating debt between 3 and 11%, and a decrease of financial expenses between 3000 and 7000 Euro.
format	article
author	Greta Falavigna Roberto Ippoliti
author_facet	Greta Falavigna Roberto Ippoliti
author_sort	Greta Falavigna
title	Legal environment and corporate finance: evidence from the Italian manufacturing industry
title_short	Legal environment and corporate finance: evidence from the Italian manufacturing industry
title_full	Legal environment and corporate finance: evidence from the Italian manufacturing industry
title_fullStr	Legal environment and corporate finance: evidence from the Italian manufacturing industry
title_full_unstemmed	Legal environment and corporate finance: evidence from the Italian manufacturing industry
title_sort	legal environment and corporate finance: evidence from the italian manufacturing industry
publisher	SpringerOpen
publishDate	2021
url	https://doaj.org/article/0f64555615464eef9cda966cf74bb05d
work_keys_str_mv	AT gretafalavigna legalenvironmentandcorporatefinanceevidencefromtheitalianmanufacturingindustry AT robertoippoliti legalenvironmentandcorporatefinanceevidencefromtheitalianmanufacturingindustry
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Legal environment and corporate finance: evidence from the Italian manufacturing industry

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