The Effect Of Dimension Companies On The Level Of Debt: A Study Of The Fishing Industry In Spain

Abstract

The present concern that exists in the economy on account of the high level of debt facing non-financial companies in Spain also exists in the fish and seafood processing industry, particularly to the extent that it might affect the fisheries sector as a whole. Given that Spain has generated an important processing sector and has become the main producer of canned fish and seafood in the EU, it is undoubtedly a pertinent case of reference to analyse this problem. Along these lines, this study specifically looks at the economic structure and financial viability of the canning industry in Spain’s largest area of production (Galicia), analysing the possible interrelationships that may exist between debt levels and the business structure in this sector of the economy. Furthermore, the study is carried out in a scenario of increased demand and of risks associated with international competition, which makes the implementation of competitive strategies to guarantee the future of this activity recommendable. The results obtained show the existence of a close relationship between the size of the companies and the debt level.