A Statistical Analysis of Companies' Financing Strategies in Portugal during the COVID-19 Pandemic

Tavares, Fernando; Santos, E.; Vasconcelos, Mafalda Venâncio de; Tavares, Vasco Capela

Publication

A Statistical Analysis of Companies' Financing Strategies in Portugal during the COVID-19 Pandemic

2023-02-11Journal article

dc.contributor.author	Tavares, Fernando
dc.contributor.author	Santos, E.
dc.contributor.author	Vasconcelos, Mafalda Venâncio de
dc.contributor.author	Tavares, Vasco Capela
dc.date.accessioned	2023-12-28T20:36:06Z
dc.date.available	2023-12-28T20:36:06Z
dc.date.issued	2023-02-11
dc.date.updated	2023-12-22T18:43:59Z
dc.description.abstract	This study aims to establish which sources of financing were used and the relevance of different banking products for Portuguese companies during the pandemic. We also intend to understand the determinants of companies’ financing options and what lies behind their decisions concerning the appropriate level of debt. A quantitative methodology was used, based on a ques tionnaire given to Portuguese companies to analyse different financing issues. The sample was composed of 1957 companies with a business volume of more than EUR 500,000 per year. The results show that Portuguese companies focused on managing liquidity and corporate risk. We found evidence that companies kept financing themselves by banking products such as in the pre-pandemic period, although 29.6% resorted to the LAE-COVID economy support line. Companies decide on the appropriate amount of debt based on the nature of the business, the phase of the life cycle in which the company is, the cash flows’ volatility, accounting results, credit rating, and fiscal benefits. Academicians and companies should master the concept of company financing and adopt strategies to consider the level of debt and refine the banking products to be used. Although the literature on business financial management usually claims that all crises are the same, the COVID-19 pandemic not only caused a recession but also forced people and companies to adapt to a new environment. Portuguese companies have shown resilience and focus on their adoption of good financing practices.	pt_PT
dc.description.version	info:eu-repo/semantics/publishedVersion	pt_PT
dc.identifier.citation	Tavares, Fernando, Eulália Santos, Mafalda Venâncio de Vasconcelos, and Vasco Capela Tavares. 2023. A Statistical Analysis of Companies’ Financing Strategies in Portugal during the COVID-19 Pandemic. Journal of Risk and Financial Management 16: 116. https://doi.org/10.3390/jrfm16020116	pt_PT
dc.identifier.doi	10.3390/jrfm16020116	pt_PT
dc.identifier.issn	1911-8074
dc.identifier.slug	cv-prod-3281628
dc.identifier.uri	http://hdl.handle.net/10400.8/9142
dc.language.iso	eng	pt_PT
dc.peerreviewed	yes	pt_PT
dc.publisher	MDPI	pt_PT
dc.relation.publisherversion	https://www.mdpi.com/1911-8074/16/2/116	pt_PT
dc.rights.uri	http://creativecommons.org/licenses/by/4.0/	pt_PT
dc.subject	Alternative forms of financing	pt_PT
dc.subject	Financial structure	pt_PT
dc.subject	Credit evaluation	pt_PT
dc.subject	Financial management	pt_PT
dc.subject	Financing strategies	pt_PT
dc.title	A Statistical Analysis of Companies' Financing Strategies in Portugal during the COVID-19 Pandemic	pt_PT
dc.type	journal article
dspace.entity.type	Publication
oaire.citation.conferencePlace	Basileia	pt_PT
oaire.citation.title	Journal of Risk and Financial Management	pt_PT
oaire.citation.volume	Vol. 16, n.º 2	pt_PT
person.familyName	Santos
person.givenName	Eulália Maria Mota
person.identifier	AAO-4024-2020
person.identifier.ciencia-id	D515-A6BD-A750
person.identifier.orcid	0000-0001-8069-2657
person.identifier.scopus-author-id	37089304300
rcaap.cv.cienciaid	D515-A6BD-A750 \| Eulália Maria Mota Santos
rcaap.rights	openAccess	pt_PT
rcaap.type	article	pt_PT
relation.isAuthorOfPublication	ef54e890-81e1-4ae4-a2eb-7c64921798f4
relation.isAuthorOfPublication.latestForDiscovery	ef54e890-81e1-4ae4-a2eb-7c64921798f4