Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Additionally, we find that the primary concern for banks is the trend of SME's short-term lines of credit. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance 23, 589-609.
H4: Among the SME credit history, the usage level of their short-term lines of credit represents their main determinant.
The financial structure as well as its effects is never the only determinants of the default probability as measured by rating systems. The profitability performances plays a relevant role in the credit evaluation process of a given (Edmister, 1972, Pagliacci,2006). This statement is then verified by the 5th hypothesis:
H5: An increase in profitability of an SME improves its rating.
The variables that plays a role in the failure prediction
The failure prediction models are based on a standard set of variables/indicators. Extant literature indicates that these variables can be divided into there main categories (Altman,1968; Caouette et al., 1998; Beaver, 1967; Edminster 1972; Chen & Shimerda, 1981;Pompe & Bilderbeek, 2005).
1. Loss of competitive strength as a result of a fall in the demand or a sudden drop in internal efficiency.
2. Increase in the level of debt weight as a result of an external event, like a rise in interest rates; or on the basis of internal reasons, like reduced cash flow or a financial structure imbalance.
3. Deterioration in the quality of the nature credit relationship, especially in relation to the short-term lines of credit.
Method:
1. Conduct a literature review on the use creditworthiness models in the rating of the financial SMEs
2. Write an in-depth research report that combines my own understanding of all the relevant theories and integrates previous research with the results of my own empirical research.
Timetable:
Prepare the research proposal by Complete the data collection process by....
Complete the data analysis process by Give presentation
Berger, a.N., & Udell, G.F. (1995). Relationship lending and lines of credit in small firm finance. Journal of Business 68, 351-382.
Beaver, W.H. (1967). Financial ratios as predictors of failure. Empirical research in accounting: Selected studies. Supplement to Journal of Accounting Research 4, 71-111.
Berry, a., & Robertson, J. (2006). Overseas bankers in the UK and their use of information for making lending decisions: Changes from 1985. The British Accounting Review 38, 175-191.
Chen, K.H., & Shimerda, T.A. (1981). An Empirical Analysis of Useful Financial Ratios. Financial Management 10, 51-60.
Claessens et al. (2005). The Basel II Reform and Retail Credit Markets. Journal of Financial Services Research 28:1/2/3 5
Edmister, R. (1972). An empirical test of financial ratio analysis for Small Business failure prediction. Journal of Financial and Quantitative Analysis 7, 1477-1493.
Ekpenyong, DB Nyong, MO (1992).SMALL and MEDIUM-SCALE ENTERPRISES in NIGERIA: Their characteristics, problems and sources of finance
Ogechukwu, AD (2011). The Role of Small Scale Industry in National Development in Nigeria. Universal Journal of Management and Social Sciences Vol. 1, (1)
Pagliacci, M. (2006). SME's and Basel 2 Challenge. Theoretical and Applied Economics 3, 7-10.
Pompe, P., & Bilderbeek, J. (2005). The prediction of bankruptcy of small- and medium-sized industrial firms. Journal of Business Venturing 20, 847-868.
References
Altman, E.I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance 23, 589-609.
Berger, a.N., & Udell, G.F. (1995). Relationship lending and lines of credit in small firm finance. Journal of Business 68, 351-382.
Beaver, W.H. (1967). Financial ratios as predictors of failure. Empirical research in accounting: Selected studies. Supplement to Journal of Accounting Research 4, 71-111.
Berry, a., & Robertson, J. (2006). Overseas bankers in the UK and their use of information for making lending decisions: Changes from 1985. The British Accounting Review 38, 175-191.
Justifications and Excuses As Adam leaves the bank and approaches his car, he sees his wife behind the wheel of the car with an unknown man seated next to her holding an object to her side. Another man approaches Adam and informs him that he and his partner will kill Adam's wife unless Adam robs the bank and returns to the parking lot within five minutes. He hands Adam a stick-up
Research Grant National Institutes of Health Research Grant This essay examines the application process for the National Institutes of Health (NIH) research grant through the National Human Genome Research Institute (NHGRI), Funding Opportunity Title Genomic Resource Grants for Community Resource Projects (U41), Funding Opportunity Announcement Number PAR-11-095. The NHGRI was established originally as the National Center for Human Genome research in 1989 and led the NIH's contribution to the Human Genome Project. This
Calvin graphically expresses this in the following excerpt: Why, then, are we justified by faith? Because by faith we grasp Christ's righteousness, by which alone we are reconciled to God. Yet you could not grasp this without at the same time grasping sanctification also. For he "is given unto us for righteousness, wisdom, sanctification, and redemption" [1 Cor. 1:30]. Therefore, Christ justifies no one whom he does not at the
Justification and Evidence for Nutrition Promotion in Fruits and Vegetables in our diet 'Eat your fruits and vegetables' is one of the original recommendations that we get for a healthy diet. This is a good argument. Eating plenty of fruits and vegetables can help individuals fight heart disease and stroke, keep blood pressure and cholesterol under control, avoid certain kinds of cancer, prevent a painful intestinal ailment known as diverticulitis,
Key terms to be considered in this process will be those concerning a developed understanding of the purpose of the study from a health perspective. Therefore, this section should provide the study with a clear identification of those terms which will be needed for an understanding of the research subject as a whole. Health Belief Model is a theoretical model framing our study. This model, which is often referred to in the justification for public information campaigns,
Student Engagement and Mathematical Justification The following paper begins with the description of student engagement. It moves further to identify the effect of student engagement on student performance. In addition to that, the paper also focuses on the importance of mathematical justification. The paper also highlights the importance of student engagement in mathematical justification. Furthermore, the paper comments on the options that the teachers have for improving the student engagement in their