Reflotando empresas en un escenario de insolvencia generalizada

  1. Manuel Rico Llopis
  2. Francisco Puig Blanco 1
  1. 1 Universitat de València
    info

    Universitat de València

    Valencia, España

    ROR https://ror.org/043nxc105

Journal:
Revista de Contabilidad y Tributación. CEF

ISSN: 2695-6896,  2792-8306

Year of publication: 2022

Issue: 475

Pages: 229-250

Type: Article

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More publications in: Revista de Contabilidad y Tributación. CEF

Abstract

Firms usually file for bankruptcy during economic crises to recover from decline and insolvency. This study aims to assess the effectiveness of strategic recovery responses in the context of extreme severity decline, the Spanish bankruptcy procedure. For this purpose, we conducted a longitudinal analysis of a sample of 868 bankrupt Spanish firms from 2004-2017. The results reveal that sales increases contribute to successfully overcoming the bankruptcy procedure, i.e., both surviving and improving performance, while investing in assets showed no significant effects in improving the likelihood of surviving and increasing performance. Successful firms also adopted asset and cost retrenchment measures, which obtained the necessary resources to boost their business even during bankruptcy. These findings suggest that bankrupt firms should focus on recovery strategies based on sales increases, for which it will be necessary that proper retrench-ment actions be adopted to provide a solid base for recovery.

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