Abstract
This paper examines the effects of changes in civil and fiscal law that were made to facilitate direct access to the debt capital market by unlisted companies in Italy to allow them (particularly SMEs) to cope with the persisting credit crunch. This study is based on an empirical investigation of data regarding issues listed in the ExtraMOT Pro market (MTF) of the Italian Stock Exchange from March 2013 to June 2014.
Our results demonstrate that few issues were listed in this period and that approximately one-half of the total outstanding issues were absorbed by issues of the top three companies. This is because companies of medium to large size were also among the first movers; afterwards, issues were primarily launched in smaller amounts. The most frequent sectors are services (Information and Communication Technology, engineering, gaming) and building/real estate sectors.
Despite the slow start, corporate finance regulations have created “work in progress” so that a greater use of direct financing through bonds, in addition to bank credit, is almost at hand.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
It is estimated that a control group is present in only 10 % of small Italian businesses and in approximately 15 % of the medium ones.
- 2.
Even the European Council Recommendation on the National Reform Programme 2014 of Italy, at point 4, suggests that Italy “promote the access of enterprises, especially those of small and medium-size, to non-bank funding”.
- 3.
D.L. n. 83/2012 (Decreto Sviluppo I), D.L. n. 179/2012 (Decreto Sviluppo II) and D.L. n. 145/2013 (Decreto Destinazione Italia). Art. 12 of the latter Decree has further amended: Art. 32 of the Development Decree II, art. 46 of the Banking Law and the Law on securitization.
- 4.
The calculations reported in this paper relate to issues listed on ExtraMOT PRO until 2 July 2014.
- 5.
The ExtraMOT falls into the category of MTF (Multilateral Trading Facilities; previously ATS. Alternative Trading Facilities), which are private trading systems that allow for the purchase and sale of securities by bringing trading interest from various parties on the basis of non-discretionary rules.
- 6.
1. Campania; 2. Emilia-Romagna; 3. Lazio; 4. Liguria; 5. Lombardia; 6. Marche, 7. Molise; 8. Piemonte; 9.Puglia; 10. Sicilia; 11. Trentino-Alto Adige; 12. Umbria; 13. Veneto.
- 7.
For more details about the role of banks in supporting SMEs in this field, see Malavasi (2015).
- 8.
The problem of the illiquidity of securities could be solved by operators who are committed to serving as market-makers for already structured and quoted mini-bonds to develop a liquid secondary market that would also benefit the primary one, as it would stimulate investors to use these relatively new tools.
- 9.
In perspective, it is planned to extend the warranty even to portfolios of loans already in place, consistent with the intent expressed by the ECB to refinance banks through the ABS.
- 10.
This refers, in particular, to the operations of the cornerstone investors of the Business Finance Partnership type in the UK or constraints on portfolios for institutional investors in France.
References
Bank of Italy (2014) Annual report for 2013. Bank of Italy, Rome
Culicchi R, Puna J (2014) I nuovi strumenti di finanziamento per le imprese: i c.d. Mini-bonds. Diritto Bancario. http://www.dirittobancario.it/approfondimenti/capital-markets/i-nuovi-strumenti-di-finanziamento-le-imprese-i-cd-mini-bonds
Gai L, Ielasi F (2013) L’impatto dei mini bond sulla gestione finanziaria delle imprese. In: Calugi R, Paglietti G (eds) Mini-bond. Istruzioni per l’uso. CCIAA, Milan
Malavasi R (2015) Bottlenecks of the financial system at national and regional level: the case of Italy and Sardinia. In: Rossi SPS, Malavasi R (eds) The global financial crisis, bank behaviour and the credit crunch (forthcoming)
Monferrà S, Porzio C (2014) I rapporti banca-impresa. In: Paper presented at the ADEIMF winter workshop, University of Milano-Bicocca, Milan, 13–14 Feb 2014. http://www.adeimf.it/images/documenti/convegni/febbraio2014/Sessione_1_I_rapporti_banca_impresa_Monferr%C2%85_Porzio.pdf
Panetta F, Signoretti FM (2010) Domanda e offerta di credito in Italia durante la crisi finanziaria. Bank of Italy, Occasional Paper No. 63
Zanotti F, Martinoli G (2014) “Minibond”, strumenti di sviluppo o sopravvivenza? Report by Corporate Strategy Expertise-Crescendo Srl, Milan. http://www.cse-crescendo.it/minibond-strumenti-di-sviluppo-o-sopravvivenza/
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this paper
Cite this paper
Riccio, G. (2016). Direct Access to the Debt Capital Market by Unlisted Companies in Italy and the Effects of Changes in Civil Law: An Empirical Investigation. In: Rossi, S., Malavasi, R. (eds) Financial Crisis, Bank Behaviour and Credit Crunch. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-17413-6_12
Download citation
DOI: https://doi.org/10.1007/978-3-319-17413-6_12
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-17412-9
Online ISBN: 978-3-319-17413-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)