COMBINED ANALYSIS OF FACTORS OF BUSINESS FAILURE IN THE SPANISH TOURISM SECTOR

There is no consensus in the literature on the determinants of business failure, given the complexity and dynamic interaction between them. This paper focuses on the financial failures of the Spanish tourism sector in 2022, as it is one of the most affected by the paralysis of economic activity as a consequence of Covid-19. Using the SABI database, we applied a fuzzy set Qualitative Comparative Analysis (fsQCA) focused on the variables traditionally considered by the literature. We find that several combinations of financial attributes lead to the failure of Spanish tourism firms, none of them individually being sufficient, but depending on the interaction of other attributes, which reveals complex antecedent conditions for the explanation of the phenomenon. Specifically, we find that the combined effect of high indebtedness and low levels of profitability, activity and solvency are sufficient conditions to lead to failure in Spanish tourism companies. Additionally, when we consider the size of the entities, we find a substitution effect between a low level of turnover and low liquidity. The identification of the combination of financial ratios that warn of problems of continuity in companies in the tourism sector is of great relevance for Spanish economic development, researchers and managers in the sector.