THE COVID-19 HEALTH CRISIS AND CORPORATE DEBT: WHAT IMPACT OF THE CRISIS ON SOME TUNISIAN SMES
DOI:
https://doi.org/10.46273/jobe.v10i2.326Keywords:
SMEs, health crisis, debt, COVID-19, cash flowAbstract
Small and medium-sized enterprises have a key role in economic development and job creation, but lately, and in the footprint of the COVID-19 pandemic, a violent health and economic crisis is emerging that threatens many affected countries.The objective of this study is to assess the effect of the COVID-19 health crisis on the indebtedness of Tunisian SMEs. For this purpose, a sample of 140 SMEs was selected, and for the data analysis, we resorted to the truncated regression methodology via the STATA 12 software, the results show a positive effect of indebtedness on the health crisis of the COVID-19, SMEs are struggling to repay their debts, but there is a delay in repaying them on time. Moreover, the results show precisely that the health crisis of COVID-19 has been the cause of other challenges that prevent SMEs from functioning, which implies the usefulness of the intervention of governments and partners in order to overcome the cash flow difficulties.
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Yaakoubi, A., & Riahi, O. (2007). The determinants of the capital structure of firms: Review of the theoretical literature. Master’s thesis, Higher Institute of Accounting and Business Administration, Manouba, Tunisia.
Adair, P. & Adaskou, M. (2011). Financial theories and indebtedness of SMEs in France: A panel analysis. Revue internationale P.M.E.: economics and management of small and medium-sized enterprises, 24(3-4), 137-171.
Aissata, M. (2012). Is the financial crisis a credit rationing in Senegal? DEA dissertation, University of Franche-Comte Besancon.
Akilimali, J., Mulumeoderhwa, J-J., Murhula, B., & Bahati, P. (2019). Individual credit rationing of clients of Microfinance Institutions in the Democratic Republic of Congo: Case of FINCA/Bukavu. International Journal of Innovation and Applied Studies, 28(3), 640-651.
Alhassan, E., Hoedoafia, M. & Braimah, I. (2016). The Effects of Microcredit on Profitability and the Challenges of Women Owned SMEs: Evidence from Northern Ghana. Journal of Entrepreneurship and Business Innovation,3(1), 29-470.
Baker, M., & Wurgler, J. (2002). Market Timing and Capital Structure. The Journal of Finance, 57(1), 1-32.
Bakour, C. & Ouassou, S. (2020). Social policies in the context of COVID-19: INDH “The youth income improvement and economic inclusion program". Revue Internationale du Chercheur, 1(2), 388- 410.
Bole, V., Dominko, M., Habus, A. G., & Prasnikar, J. (2019). Countries of former YUGOSLOVIA periphery VS. super-periphery in the great recession and beyond. Economic Annals, 64(223), 11-38.
Brickell, K., Picchioni, F., Natarajan, N., Guermond, V., Parsons, L., Zanello, G., & Bateman, M. (2020). Compounding crises of social reproduction: Microfinance, over-indebtedness and the COVID-19 pandemic. World Development, 136, 105087.
Brüssow, H. (2020). The novel coronavirus - A Snapshot of current knowledge. Microbial Biotechnology, 13(3), 607-612.
Cassar, G. & Holmes, S. (2003). Capital structure and financing of SMEs. Accounting and Finance, 43(2), 123-147.
Cherif, M. (1999). Information asymmetry and financing of innovative SMEs by venture capital. Financial Economics Review, 54(4), 163-178.
Convergences (2019). Microfinance barometer 2019. [online] Paris: Convergences. Available at: <http://www.convergences.org/en/104906-2/> [Accessed 30 Apr. 2020].
Drosten, C., Gunther, S., Preiser, W., Van Der, W.S., Brodt, H.-R., Becker, S., Rabenau, H., Panning, M., Kolesnikova, L., Fouchier, R. A. M., Berger, A., Burguiere, A.-M., Cinatl, J., Eickmann, M., Escriou, N., Grywna, K., Kramme, S., Manuguerra, J.-C., Muller, S., Rickerts, V., Sturmer, M., Vieth, S., Klenk, H.-D., Osterhaus, A. D. M. E., Schmitz, H., & Doerr, H. W. (2003). Identification of a Novel Coronavirus in Patients with Severe Acute Respiratory Syndrome. The New England Journal of Medicine, 348(20), 1967-1976.
Elsayed, A. & Abdelrhim, M. (2020). The effect of COVID-19 spread on Egyptian stock market sectors. SSRN-id360873.
Fathi, T., & Gailly, B. (2004). The financial structure of high-tech SMEs in B. Quelin and L. Mezghani. Perspectives in Strategic Management, Paris, EMS, 111-132.
Fauci, A. S., Lane, H. C., & Redfield, R. R. (2020). Covid-19 navigating the uncharted. The New England Journal of Medicine, 382, 1268-1269.
Fukutomi, T., Tsunemitsu, H., & Akashi, H. (1999). Detection of bovine coronaviruses from adult cowswith epizootic diarrhea and their antigenic and biological diversities. Archives of Virology, 144(5), 997-1006.
Gritten, A. (2011). New insights into consumer confidence in financial services. International Journal of Bank Marketing, 29(2), 90-106.
Hervé, A. (2010). The impact of the crisis on the credit rationing of French SMEs. DRM research book, issue 6.
International Monetary Fund (2020). Annual Report.
Imane, R. (2016). Explanation of the use of financial debt: case of Moroccan SMEs. Doctoral thesis, ISCAE Group.
Khuabi, M. L. B. & Mayinga, M. G. (2020). Accounting and financial information system, and performance of small and medium-sized enterprises in the Democratic Republic of Congo. Journal of Control, Accounting and Auditing, 4(2), 788-814.
Lagadec, P. (1993). Learn to manage crises. Paris: Editions d’organisation.
Laura, N. (2015). Explanatory factors for the indebtedness of Belgian SMEs: Empirical study on panel data. DEA dissertation, Catholic University of Louvain.
Lavigne, B. & St-Pierre, J. (2007). Contribution of financial accounting to increasing the performance of SMEs and reducing their vulnerability. Literature Review, 1279-1293.
Marris, R. (1964). The economic theory of managerial capitalism. London: Ed. MacMillan.
Modigliani, F. & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297.
Modigliani, F. & Miller, M. H. (1963). Corporate income taxes and the cost of capital: a correction. The American Economic Review, 53(3), 433-443.
Myers, S. C. (1977). Determinants of Corporate Borrowing. Journal of Financial Economics, 5(2), 147-175.
Myers, S. C. & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.
Nienaber, A.-M., Hofeditz, M., & Searle, R. (2015). Do we bank on regulation or reputation? A meta-analysis and meta-regression of organizational trust in the financial services sector. International Journal of Bank Marketing, 32(5), 5-15.
Oborah, N. (2014). The Effect of Lending by Microfinance Institutions on the Financial Performance of Small and Medium Enterprises in Nairobi County. University of Nairobi.
OECD (2009). The impact of the global crisis on SME and entrepreneurship financing and policy responses. Center for entrepreneurship, SMEs and local development.
Oudda, Y., Assaad, I. M., & Bennis, L. (2020). The fallout of the Covid-19 health crisis on the Moroccan economy. Journal of Control, Accounting and Auditing, 4(2), 452-475.
Peltoniemi, J. & Vieru, M. (2013). Personal guarantees, Loan Pricing and Lending Structure in Finish Small Business Loans. Journal of Small Business Management, 51(2), 235-255.
Terrasson, B. (2020). GAFAM in the time of COVID-19. Posted in Digital Century, March 23, 2020.
Thiam, I. & Ndiaye, S. (2020). COVID-19 and digital economy in the world: The challenge of reducing the digital divide. Revue Internationale du Chercheur, 1(2), 323-341.
Treanor, J. & Falsey, A. (1999). Respiratory viral infections in the elderly. Antiviral Research, 44(2), 79-102.
World Bank (2020). Cambodia economic update: Cambodia in the time of COVID-19. Washington, D.C. World Bank.
https://www.worldbank.org/en/country/cambodia/publication/cambodia-in-the-time-
of-covid-19-coronavirus-economic-update-may-2020
Yaakoubi, A., & Riahi, O. (2007). The determinants of the capital structure of firms: Review of the theoretical literature. Master’s thesis, Higher Institute of Accounting and Business Administration, Manouba, Tunisia.
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2022-12-15
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THE COVID-19 HEALTH CRISIS AND CORPORATE DEBT: WHAT IMPACT OF THE CRISIS ON SOME TUNISIAN SMES (M. T. Kraima & S. Boudabbous , Trans.). (2022). Journal of Business And Entrepreneurship, 10(2), 88-100. https://doi.org/10.46273/jobe.v10i2.326
