You are not logged in.
Openly accessible

Modelling SME credit risk : a Thai empirical evidence

Terdpaopong, Kanitsorn and Mihret, Dessalegn Getie 2011, Modelling SME credit risk : a Thai empirical evidence, Small enterprise research, vol. 18, no. 1, pp. 63-79.

Attached Files
Name Description MIMEType Size Downloads
mihret-modellingsme-post-2011.pdf Authors' post print application/pdf 178.83KB 156

Title Modelling SME credit risk : a Thai empirical evidence
Author(s) Terdpaopong, Kanitsorn
Mihret, Dessalegn GetieORCID iD for Mihret, Dessalegn Getie orcid.org/0000-0003-1265-6333
Journal name Small enterprise research
Volume number 18
Issue number 1
Start page 63
End page 79
Total pages 1
Publisher eContent Management
Place of publication Waikato, New Zealand
Publication date 2011
ISSN 1321-5906
1175-0979
Keyword(s) financial distress
SMEs
bankrupty
discriminant analysis
Thailand
Summary This paper develops and tests a model to predict small and medium enterprise (SME) financial distress based on empirical evidence from Thailand. A sample comprising 198 financial statements of non-financially distressed and 68 statements of financially distressed SMEs were used. A parametric t-test was conducted to establish differences between financial characteristics of the two groups of SMEs.

Results show statistically significant differences (t values significant at .001) between the two groups of SMEs in the financial ratios used for the study. Discriminant analysis was then conducted to develop a model for predicting the likelihood of an SME experiencing financial distress.

The model hits an accuracy level of 97%, which compares favourably with the probability of accurate classification by chance (i.e., 65% after adjusting for the unequal sample sizes of the two groups of SMEs). A test of the model with a new sample shows the validity of the model beyond the original sample, confirming that Thai SME financial distress is amenable to prediction to a statistically significant extent. The model is expected to serve SME managers and creditors in assessing financial health of SMEs before making important decisions. The results are also expected to inform policymakers in formulating economic policies concerning SMEs.
Language eng
Field of Research 150201 Finance
Socio Economic Objective 910402 Management
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2011, eContent Management
Free to Read? Yes
Persistent URL http://hdl.handle.net/10536/DRO/DU:30065223

Document type: Journal Article
Collections: School of Accounting, Economics and Finance
Open Access Collection
Connect to link resolver
 
Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved.

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.

Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in TR Web of Science
Scopus Citation Count Cited 0 times in Scopus
Google Scholar Search Google Scholar
Access Statistics: 166 Abstract Views, 158 File Downloads  -  Detailed Statistics
Created: Wed, 30 Jul 2014, 15:10:28 EST by Leanne Swaneveld

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.