Integrating Financial and Organizational Drivers in SME Debt Dynamics: Insights from Radial Basis Function Analysis

Ardita Todri () and Petraq Papajorgji ()
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Ardita Todri: Finance and Accounting Department, University of Elbasan "Aleksandër Xhuvani", Albania
Petraq Papajorgji: Moore Albania Shpk, Albania

Sustainable Regional Development Scientific Journal, 2025, vol. II, issue 2, 45-58

Abstract: This study applies Radial Basis Function (RBF) models to examine the determinants of debt structures among small and medium-sized enterprises (SMEs), integrating financial and organizational variables across a sample of 132 firms. The findings indicate that both financial performance and organizational behavior significantly affect leverage and access to debt. Non-performing firms exhibit higher leverage and lower operational efficiency, while performing firms demonstrate stronger liquidity positions and asset utilization. Ownership structure and gender-based management differences further influence debt behavior, with domestic firms preferring long-term local debt and female or mixed ownership firms maintaining higher security margins. RBF models identify key predictors of short-term and long-term debt, highlighting the complex, multidimensional interaction between firm characteristics and financing patterns. The results provide actionable insights for financial governance, risk management, and policy design.

JEL-codes: M20 M29 M49 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bfb:srdjou:2025-02_4

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