Relationship lending and business restructuring of SME´s in Portugal

• Autor(a) principal: Maia, Telmo Dias de Carvalho Marques
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/26380
• topic: Relationship lending; Restructuring companies; Portugal; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This master thesis examines the impact of Relationship Lending on insolvency companies for small and medium companies under restructuring or insolvency in Portugal. Although there is a lot of research that relates relationship lending with capital structure and banks, there is not so much related companies with insolvency. Our goal is to check the impacts that relationship lending has on those types of companies, mainly exploring the number of banks that each company works with and also a comparison on the leverage side to check what companies are better, those which are in PER process (judicial restructuring process) or those who are not. The PER process data was obtained by from CITIUS database and SABI database and comparables companies (by size, industry and employees) data was obtained on SABI database. The econometric method used was the Probit regression, analysing companies entering PER process and companies that did not enter PER process. For the analysis we aim to answer the following question: What is the impact of relationship lending in restructuring companies in Portugal? Our research shows that there is a positive impact of the number of Banks that the companies work with and also of leverage. Considering the size and the measure of profitability which is the return on assets, there is a negative correlation between these and the probability of entering PER process.