Improving the Accuracy of Firm Failure Forecasting Using Non-Financial Variables: The Case of Croatian SME

Autor:	Tamara Kuvek, Ivica Pervan, Maja Pervan
Jazyk:	angličtina
Rok vydání:	2023
Předmět:	SME firm failure non-financial variables Engineering machinery tools and implements TA213-215
Zdroj:	Engineering Proceedings, Vol 39, Iss 1, p 62 (2023)
Druh dokumentu:	article
ISSN:	2673-4591 74474421
DOI:	10.3390/engproc2023039062
Popis:	Empirical findings based on a bivariate logistic regression model with two SME categories (successful and failed) indicate that by adding non-financial indicators to the model based on financial variables, the accuracy of forecasting increases significantly. Namely, the total classification error decreases by an average of 26.99%, while the AUROC value increases by an average of 7.33%. In the additional model, with three firm categories (successful, sensitive, and failed), the findings reveal that one financial variable (self-financing) and three non-financial variables (orderly settlement of obligations, export, and age) significantly explain the occurrence of the early stage of SME failure.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/fa05dceb74474421aeda4c2acf9a9cbf Zobrazit plný text záznamu View record in DOAJ