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The importance of financial and non-financial ratios in SMEs bankruptcy prediction

Author

Listed:
  • Aneta Ptak-Chmielewska

    (Warsaw School of Economics)

  • Anna Matuszyk

    (Warsaw School of Economics)

Abstract

Credit risk is considered to be a key risk in banking activity. Statistical and data mining bankruptcy prediction models can be used in assessing the credit risk of enterprises. In the case of small and medium enterprises, qualitative factors are as important as financial ones. In this paper those financial ratios and qualitative factors that are the most frequently used in assessing bankruptcy prediction of small and medium enterprises were discussed. They were analysed and assessed with the use of data mining techniques, and they were also considered from the point of view of their inclusion in the bankruptcy prediction model.

Suggested Citation

  • Aneta Ptak-Chmielewska & Anna Matuszyk, 2018. "The importance of financial and non-financial ratios in SMEs bankruptcy prediction," Bank i Kredyt, Narodowy Bank Polski, vol. 49(1), pages 45-62.
    • Handle: RePEc:nbp:nbpbik:v:49:y:2018:i:1:p:45-62
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    bankruptcy prediction; non-financial ratios; random forests;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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