Clara Cardone-Riportella

Analyzing the Role of Mutual Guarantee Societies on Bank Capital Requirements for Small and Medium-Sized Enterprises

This paper analyzes the impact of the guarantee provided by mutual guarantee societies (MGSs) on the risk premium that banks should charge for small- and medium-sized enterprise (SME) loans under the new Basel Capital Accords (Basel II and III). We also examine whether the foreseeable decrease in the theoretical credit risk premium would be compensated by the cost of the MGS guarantee. To do so, we develop a rating system for SMEs that uses a large sample of Spanish firms over the period from 2005 to 2009. We find that the final effect of the guarantee on the SME risk premium depends on the values taken by the credit variables of the MGS (essentially, the probability of default).

Managerial positions of women in Spanish exporting SMEs

ABSTRACT The aim of this paper is to analyse the influence on Spanish Small and Medium Enterprises exporting activity of women in managerial positions. We distinguish women in three roles: as owners, as board members and as executive managers. Data were collected from System for Analysis of Iberian Balances database and the Spanish High Council of Chamber website. We built a sample of 266 Spanish exporting SMEs during the period 2000–2011, characterised by both financial stability and instability. Applying panel data methodology we observe that firms with executive women are more likely to export, have higher exported volumes, exhibit a more cautious selection of countries and exert a moderation effect in times of crisis. We also confirm the prudential character of women as owners while there are no significant results for women as board members. The paper has some implications for researches, SME’s governance and policymakers.

Reverse takeover: the moderating role of family ownership

ABSTRACT The aim of this study was to analyse the determinants of reverse takeovers, examining the influence of target firm shareholders’ type in the agreement. We examine reverse takeovers implemented in the Alternative Investment Market between 1999 and 2012, paying special attention to the differences between family and non-family target firms, as well as the impact of the financial crisis. We propose that family firms have a lower probability of accepting a reverse takeover (‘shell’ firm), to avoid both diluting the ownership structure (loss of control) and new shareholders entering their firm. Our main findings show that the higher the percentage of ownership held by family holders, the lower the probability of their being the target firm in a reverse takeover. This effect is maintained during the crisis period, in accordance with the expectation that family firms will have fewer financial constraints.