Work detail

Impacts of European Bailout Programs on SMEs Distress rate

Author: Mgr. Simona Tóthová
Year: 2015 - summer
Leaders:
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 76
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/125707/
Abstract: This thesis empirically investigates impact of countries’ bailouts on probability of SME segment distress. The
impact is examined by multi-period logit model where dependent variable is distress rate and explanatory variables
includes self-constructed bailout variable, several binary predictors and firm-specific and macroeconomic control
variables. The hypotheses are tested on dataset for period from 2005 to 2013 including observations from seven
European countries which received financial assistance program (bailout) from Troika. Every bailout from Troika
comes with the requirement for austerity measures and our results suggest that impact of bailouts on SMEs
probability of distress are depended on the success of application in individual countries and the impacts are more
positive in non euro-zone countries

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