The financial distress indicators trend in Italy: an analysis of medium-size enterprises

Alessandro Zeli ()

Eurasian Economic Review, 2014, vol. 4, issue 2, 199-221

Abstract: This study analyses financial distress as evidenced by financial ratios calculated for Italian medium-sized enterprises from 1989 to 2007, the study is carried out by means of a Dynamic Factorial Analysis (DFA). The data for the Italian firms come from about 240,000 surveys’ records and financial statements over the period. Four basic areas identified as being economically significant in affecting the financial distress include: the leverage index, the measure of the efficiency, the measure of performance, and the measure of liquidity. The financial distress trend has been analysed through a “synthetic” indicator summarizing the information represented by financial ratios by means of a dynamic factorial analysis. The results highlight a slight increase in financial distress over the period and different behaviours of the financial distress indicator among the Italian industries. In particular specific tendencies are detected for capital intensive sectors and for export sectors. Copyright Eurasia Business and Economics Society 2014

Keywords: Bankruptcy risk; Financial distress; Profitability; Multi-way data analysis; Financial ratio analysis; D21; M40; G32 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1007/s40822-014-0010-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurase:v:4:y:2014:i:2:p:199-221

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40822

DOI: 10.1007/s40822-014-0010-5

Access Statistics for this article

Eurasian Economic Review is currently edited by Dorothea Schäfer

More articles in Eurasian Economic Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().