Achieving sustainable reorganization after bankruptcy: empirical evidence from formal proceedings of Austrian SMEs
Sprache des Vortragstitels:
Englisch
Original Tagungtitel:
IABE 2024 Las Vegas
Sprache des Tagungstitel:
Englisch
Original Kurzfassung:
The main purpose of this article is to study the influence of innovation, strategic repositioning, and firm-related characteristics on the outcome of reorganization within formal proceedings in Austrian SMEs. A total of 459 bankrupt firms located in Upper Austria were included, this comprises a complete survey of all insolvencies opened in 2012. The results illustrate the central challenges of sustainable reorganization in a creditor-friendly bankruptcy law. They give considerations for further scientific studies and the further development of reorganization options for bankrupt SMEs.The main purpose of this article is to study the influence of innovation, strategic repositioning, and firm-related characteristics on the outcome of reorganization within formal proceedings in Austrian SMEs. Although bankruptcy and failure of SMEs worldwide are constantly a major topic in academic crises and turnaround literature, the path to sustainable reorganization has been largely neglected up to now. A sustainable reorganized firm shows, after successfully overcome the causes of the crisis, a sufficient creditworthiness in relation to industry average which is conferred by outside actors (e. g. credit protection associations). A total of 459 bankrupt firms located in Upper Austria were included, this comprises a complete survey of all insolvencies opened in 2012. The study aims to identify factors influencing economically sustainable reorganization. The most important finding is that only a very small proportion of the analyzed companies (SMEs with a high proportion of micro-enterprises) achieve long-term, not to mention, sustainable reorganization.
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