We implement the stress test methodology of the banking industry in conjunction with a Logit model of bankruptcy with parameters estimated with data from the Great Recession (2008–2013) to predict ...which firms would face financial distress among Spanish hospitality firms during 2020 due to the Covid-19 disaster. The predictions from both methods rely on the last accounting data available and on the expected revenue drop for 2020. Both methods coincide to predict that 25% of these firms will face a financial distress situation if revenues drop 60%. This forecast raises up to 32% of firms if revenues drop 80%. Financial distress will affect mainly small firms. Most of the firms in financial distress will face solvency problems, with total assets being insufficient to pay all debts.
The power to manifest profits to a company is considered to be the key to success in creating good decisions about a company's financial performance. This current research aims to empirically prove ...the relationship between liquidity ratios, solvency, activity, profitability, and financial performance. The objective of this study is to statistically show whether liquidity, solvency, activity and profitability affects financial performance. This research uses secondary data that is obtained from food and beverage companies' financial reports that are listed from the Indonesian Stock Exchange between 2019-2021 time period. Determinants are analyzed using multiple linear regression methods using SPSS ver.26. The results of this research proves that solvency and activities affect financial performance, while liquidity and profitability do not affect financial performance. The difference between this study and previous research by Rumina and Desy (2021) is the addition of independent variables, namely solvency and activity variables.
Purpose
Following the United Kingdom's (UK) withdrawal from the European Union (EU), there is uncertainty in the financial services industry on equivalence of regulatory regimes. This also affects ...the insurance industry. As of now, it is not clear if the UK’s supervisory regime (“Solvency UK”) will be classified as equivalent to the European Solvency II supervisory regime. After no equivalence decision was taken during the Brexit transition period and there are efforts by the UK in the form of the UK Solvency II Review and the Financial Services and Markets Bill to adapt Solvency II more to the characteristics of the national insurance market, the uncertainties are intensified. Although Solvency II non-equivalence would have a significant impact on insurance groups operating in both the UK and the EU, there has been no detailed analysis of whether these initiatives could have an impact on a future Solvency II equivalence decision. The purpose of this paper is to address and close this research gap with a literature review and a subsequent equivalence mapping and discussion.
Design/methodology/approach
Based on the literature review methodology, this paper draws on academic sources as well as publications from governments and regulators, articles from consultancies and subject matter experts and uses this literature to provide an overview of the current state of research on equivalence in the wider financial services industry, but specifically on Solvency II equivalence, the UK Solvency II Review and the Financial Services and Markets Bill. Based on this literature review, the paper also forms the basis for an innovative and forward-looking Solvency II equivalence mapping and discussion.
Findings
Several articles state that differences between Solvency II and Solvency UK could harm a future Solvency II equivalence decision. The UK Solvency II Review and the Financial Services and Markets Bill are two initiatives that support the objective of aligning the Solvency II supervisory regime more closely with the circumstances of the UK insurance market. Although both initiatives contribute to the fact that Solvency UK differs in parts from Solvency II, based on the literature review and the subsequent equivalence mapping and discussion, there are currently no reforms that should harm future Solvency II equivalence decisions.
Originality/value
This paper provides a previously non-existent overview of equivalence in the wider financial services industry, but specifically on Solvency II equivalence, the UK Solvency II Review and the Financial Services and Markets Bill, and brings them together in an innovative equivalence discussion. It thus presents the current state of knowledge on Solvency II after Brexit and develops it further around a mapping against the equivalence criteria. As non-equivalence could have significant implications for insurance groups operating in both the UK and the EU, this paper is a useful and practical study that provides a previously non-existent equivalence mapping and discussion based on current initiatives and publications. It thus closes the research gap identified and reduces uncertainties in the insurance industry and can be used as a blueprint for detailed and forward-looking equivalence mappings and discussions for the wider financial services industry.
El trabajo analiza y reflexiona respecto de la responsabilidad civil que le cabe al prestamista en caso de incumplimiento de los deberes circunscritos a la evaluación de solvencia del art. 17 N de la ...LPDC. Para ello, estudia la naturaleza de los deberes establecidos en la norma en su vinculación con el deber de seguridad en el consumo y, a partir de allí, determina el régimen de responsabilidad civil aplicable al caso de incumplimiento, y los alcances que ello presenta en algunos elementos de la respectiva responsabilidad civil.
Poverty and intimate partner violence create a cycle that is difficult for women to escape. To create programs to help women escape the cycle, a full understanding of economic solvency is needed. A ...Model of Economic Solvency has been created, and this Grounded Theory study serves to validate the model and give more details so that it can be effectively used in research and interventions. The revised model defines economic solvency as a woman’s human capital, social capital, sustainable employment, independence, and assets. These factors are affected by opportunities and threats in her relationships, community, and society.
Purpose: This research was conducted to test whether the age of the company, along with its profitability, impacts its company's financial difficulties. For this reason, the research that was carried ...out later had the main objectives, namely to find out 1) whether profitability has an impact on financial distress, and 2) whether the age of the company also has an impact on the financial distress of manufacturing companies. Design/Methodology/Approach: In order to be able to answer various possible answers, this study uses a quantitative methodology by analyzing financial statement data for manufacturing companies listed on the IDX during the 2020-2022 period. There were target companies, namely there were 8 companies that would be analyzed. All data would be analyzed using multiple linear regression tests to prove the effect of the two independent variables. Findings: The results showed that 1) the profitability of manufacturing companies has a positive effect on the financial distress experienced by the company; and 2) The age of the company has a relationship or influence on financial distress. Implications/Originality/Value: These results gave us an understanding to carry out management accounting analysis to find out how likely it would be faced in cases of financial difficulties that would be experienced by each company.
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