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Lookup NU author(s): Dr Mariachiara Barzotto
This is the authors' accepted manuscript of an article that has been published in its final definitive form by John Wiley & Sons Ltd., 2018.
For re-use rights please refer to the publisher's terms and conditions.
This study acknowledges the diversity between micro, small, and medium‐sized firms while predicting bankruptcy and financial distress of the United States small and medium‐sized enterprises. Empirical findings suggest that survival (failure) probability increases (decreases) with increasing firm size and firms in different size categories have varying determinants of bankruptcy, whereas factors affecting their financial distress are mostly invariant. Magnitude of significant covariates changes across the size categories of both bankrupt and financially distressed firms. Further, operating cash flow information does not add any marginal increment in prediction performance of multivariate hazard models above baseline models developed using information from income statements and balance sheets. This result holds for failure likelihood of small and medium‐sized enterprises and their respective size categories.
Author(s): Gupta J, Barzotto M, Khorasgani A
Publication type: Article
Publication status: Published
Journal: International Journal of Finance & Economics
Print publication date: 11/10/2018
Online publication date: 25/07/2018
Acceptance date: 20/06/2018
Date deposited: 02/11/2018
ISSN (print): 1076-9307
ISSN (electronic): 1099-1158
Publisher: John Wiley & Sons Ltd.
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