Characterising the financial situation of Canadian manufacturing SMEs: a confirmatory approach
AbstractThe objective of the present empirical study is to show, through a confirmatory factor analytic approach, that it is possible to obtain a complete, yet parsimonious, financial characterisation of a manufacturing SME through a limited number of essential indicators. An a priori classification scheme composed of 19 financial ratios and five perceptual indicators, regrouped under five dimensions (growth, profitability, liquidity, gearing, efficiency), was tested and validated with data obtained from 209 Canadian firms. The validity of this classification was confirmed, as well as its capacity to diagnose the financial situation of SMEs. On this basis, three groups of firms emerged, namely competitive SMEs, turnaround SMEs, and vulnerable SMEs, whose financial situations differ markedly.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting, Auditing and Performance Evaluation.
Volume (Year): 4 (2007)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=41
SME classification; financial analysis; financial ratios; growth; performance; manufacturing SMEs; small and medium-sized enterprises; Canada; perceptual indicators; profitability; liquidity; gearing; efficiency.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.