This paper provides a methodological analysis of credit risk in manufacturing firms by using two different credit scoring approaches. The first is the traditional discriminant approach for bankruptcy prediction based on a logistic regression model, whereas the second, data envelopment analysis, is a nonparametric approach for measuring firms’ efficiency that does not require ex-ante information on bankrupted firms. By using a manu- facturing sample of both healthy and bankrupted firms during the period 2003–09 we provide an in-depth comparison of discriminant analysis and data envelop- ment analysis and conclude that a correct evaluation of firms’ credit worthiness is the result of successive fine- tuning procedures requiring the use of multiple metho- dological tools.

Baussola, M. L., Bartoloni, E., Financial Performance in Manufacturing Firms: a Comparison Between Parametric and Non Parametric Approaches, <<BUSINESS ECONOMICS>>, 2014; 49 (1): 32-45. [doi:10.1057/be.2013.31] [http://hdl.handle.net/10807/57124]

Financial Performance in Manufacturing Firms: a Comparison Between Parametric and Non Parametric Approaches

Baussola, Maurizio Luigi;
2014

Abstract

This paper provides a methodological analysis of credit risk in manufacturing firms by using two different credit scoring approaches. The first is the traditional discriminant approach for bankruptcy prediction based on a logistic regression model, whereas the second, data envelopment analysis, is a nonparametric approach for measuring firms’ efficiency that does not require ex-ante information on bankrupted firms. By using a manu- facturing sample of both healthy and bankrupted firms during the period 2003–09 we provide an in-depth comparison of discriminant analysis and data envelop- ment analysis and conclude that a correct evaluation of firms’ credit worthiness is the result of successive fine- tuning procedures requiring the use of multiple metho- dological tools.
2014
Inglese
Baussola, M. L., Bartoloni, E., Financial Performance in Manufacturing Firms: a Comparison Between Parametric and Non Parametric Approaches, <<BUSINESS ECONOMICS>>, 2014; 49 (1): 32-45. [doi:10.1057/be.2013.31] [http://hdl.handle.net/10807/57124]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/57124
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