Predicting rapid-growth SMEs through a reversal of credit-scoring principles Online publication date: Fri, 08-Mar-2013
by Gabriele Sampagnaro
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 18, No. 3, 2013
Abstract: The purpose of this paper is to analyse the main variables distinguishing between high-growth firms and non-high-growth firms in the Italian manufacturing market. Specifically, we aim to establish which balance-sheet ratios enable us to distinguish between high-growth and non-high-growth firms. For this purpose, we employed a discriminant analysis on the financial data of two groups of firms selected from a population of approximately 22,000 firms. The results of the analysis indicate the roles of firm size, non-financial debt and internal cash flows in the growth and success of a firm. We adopt an innovative approach that considers financial statements issued the year prior to the observation of accelerated growth as predictive of this growth (as is used by credit-scoring models, i.e., the Z-Score model, to measure the probability of default).
Online publication date: Fri, 08-Mar-2013
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Entrepreneurship and Small Business (IJESB):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com