Evaluation of bankruptcy prevention tools: evidences from COSME programme

Loredana Cultrera ()
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Loredana Cultrera: University of Mons - Warocqué School of Business and Economics - humanOrg and Risk Research Centers

Economics Bulletin, 2020, vol. 40, issue 2, 978-988

Abstract: We apply propensity-score matching (PSM) in order to qualify the efficiency of SME bankruptcy's preventive rescue plan in a European perspective. PSM has a number of comparative advantages in such analysis, including the need to allow for heterogeneous impacts, while optimally weighting observed characteristics when forming a comparison group. The results show that firms asking for a rescue plan register 5.2% higher chance to survive compared to similar (on some pre-settled characteristics) firms that do not. Deepening our analysis to the specific case of COSME Programme's leading countries, our results show that these countries outperforms Europe, with a SMEs getting 7.7% more chance to remain active.

Keywords: Bankruptcy; Prevention; European Data; PSM; Rescue Plan (search for similar items in EconPapers)
JEL-codes: G3 M4 (search for similar items in EconPapers)
Date: 2020-04-15
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Citations: View citations in EconPapers (3)

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