2024
DOI: 10.1111/ecaf.12610
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Did government support delay bankruptcy during the pandemic?

Hazwan Haini,
Pang Wei Loon,
Lawal Olamilekan Abdulwahab
et al.

Abstract: The literature reports mixed findings on the role of government intervention, even during times of crisis. The recent Covid‐19 pandemic damaged the financial health of many small firms. This study examines whether government subsidies are associated with bankruptcy rates for firms with deteriorating financial health. Using a sample of 18,422 firms from 44 countries, we estimate a logistic model that accounts for rare events. Results indicate that those firms which receive government support are more likely to … Show more

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