SMEs’ insolvency analysis in Romania in the year 2010. A microeconomic logistic approach

Marusa Beca and Irina Dragan ()
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Marusa Beca: The Bucharest University of Economic Studies

Romanian Statistical Review Supplement, 2015, vol. 63, issue 8, 58-73

Abstract: In this article we study the relationship between microeconomic factors (financial ratios) and SMEs’ insolvencies in Romania using logistic regression model to predict the likelihood of SMEs bankruptcy in the aftermath of the financial and economic crisis. We conducted a logit econometric model for each size category of SMEs (micro, small and medium). The main finding is that the return on assets (ROA) and total debt ratio (TDR) across the three size categories of SMEs are the statistically significant key indicators for the SMEs insolvencies. The best logistic model is the one for small firms because the number of fair estimations represents 80.6%.

Keywords: Insolvency; SME; logit; financial ratios; Romania (search for similar items in EconPapers)
JEL-codes: C31 C58 G01 G33 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:rsr:supplm:v:63:y:2015:i:8:p:58-73

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