Repository logo
 
Publication

Does the average payment period play a relevant role in explaining the portuguese municipalities’ financial distress?

2023-07-05Journal article Open access
Simple item page
datacite.subject.sdg04:Educação de Qualidade
dc.contributor.authorGomes dos Santos, Paula
dc.contributor.authorAlbuquerque, Fábio
dc.date.accessioned2025-04-15T14:35:25Z
dc.date.available2025-04-15T14:35:25Z
dc.date.issued2023-07-05
dc.description.abstractThe average payment period (APP) is an important measure to monitor public sector liquidity and commercial debt sustainability. In the European Union, the relevance of APP as an indicator to mitigate those concerns was settled by the issuance of a Directive on this topic. Then, considering the likely relationship between the APP and financial distress (FD), this paper aims to assess if the current and historical APP plays a relevant role in explaining the data for 308 Portuguese municipalities’ FD. Regression analysis, including panel data and simple linear regression models, is used for the period between 2011 and 2019 (the last year available for APP). The findings show that the number of municipalities that exceed the debt limit has been reducing. Some of them comply with the 30 days threshold being, nonetheless, in a financial distress situation and subject to recovery mechanisms. By APP levels, the findings identify that the APP significantly predicts FD for those entities that do not comply with the threshold. By size, the FD seems to be better explained by historical APP within the smaller entities. Finally, the robustness test and further analyses performed indicate the likely relevance of macroeconomic factors for predicting FD using APP as an explanatory variable. This paper contributes to previous studies on the municipalities’ financial condition, namely by considering the APP in the analysis of the financial situation of the municipalities. As a novelty, this study considers a new proxy for municipal FD and panel data analysis.eng
dc.description.sponsorshipInstituto Politécnico de Lisboa [IPL/2022/WES_ISCAL]
dc.identifier.citationGomes dos Santos, P., & Albuquerque, F. (2023). Does the Average Payment Period Play a Relevant Role in Explaining the Portuguese Municipalities’ Financial Distress?. Economies, 11(7), 183. https://doi.org/10.3390/economies11070183
dc.identifier.doi10.3390/economies11070183
dc.identifier.issn2227-7099
dc.identifier.urihttp://hdl.handle.net/10400.21/21832
dc.language.isoeng
dc.peerreviewedyes
dc.publisherMDPI AG
dc.relation.ispartofEconomies
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subjectAverage payment period
dc.subjectFinancial distress
dc.subjectPortuguese municipalities
dc.subjectOver-indebtedness
dc.subjectPanel data analysis
dc.subjectIPL/2022/WES_ISCAL
dc.titleDoes the average payment period play a relevant role in explaining the portuguese municipalities’ financial distress?eng
dc.typejournal article
dspace.entity.typePublication
oaire.citation.issue7
oaire.citation.titleEconomies
oaire.citation.volume11
oaire.versionhttp://purl.org/coar/version/c_970fb48d4fbd8a85
person.familyNameGomes dos Santos
person.familyNameAlbuquerque
person.givenNamePaula
person.givenNameFábio
person.identifier2083208
person.identifier.ciencia-id5A1B-D8A2-47C4
person.identifier.ciencia-id321C-4345-98A2
person.identifier.orcid0000-0003-2192-8855
person.identifier.orcid0000-0001-8877-9634
person.identifier.scopus-author-id57192316632
relation.isAuthorOfPublication14027702-881c-41fc-aae6-6200c987725c
relation.isAuthorOfPublication26fb9500-7aa0-4e26-85d0-9dac4a581202
relation.isAuthorOfPublication.latestForDiscovery14027702-881c-41fc-aae6-6200c987725c

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Does the Average Payment Period Play a Relevant Role in Explaining the Por...stress.pdf
Size:
1.24 MB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
4.03 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

ISCAL - Artigos