A Non Parametric Approach To Firms’ Failures In Italy: A Case Study From 2000 To 2011

 

Author(s)

Francesca di Donato , Luciano Nieddu ,

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Volume 3 - March 2014 (03)

Abstract

In this paper the problem of firms’ failures will be addressed. The aim is to determine which are the trigger factors that can predict the inability of a firm to cover its obligations. Various methods are available in the literature in order to analyze this problem. The aim of this paper is to use two non parametric robust classification methods to determine the variables that can affect the probability of failure. The study will be carried out on an Italian sample of non listed smallmedium firms (both failed and still on the market) randomly selected over a period of 12 years (2000- 2011). 

Keywords

Outliers; Business Failures, Classification Trees, Cross-section Study, Discriminant 

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