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Integrating Financial and Organizational Drivers in SME Debt Dynamics: Insights from Radial Basis Function Analysis

Author

Listed:
  • Ardita Todri

    (Finance and Accounting Department, University of Elbasan "Aleksandër Xhuvani", Albania)

  • Petraq Papajorgji

    (Moore Albania Shpk, Albania)

Abstract

This study applies Radial Basis Function (RBF) models to examine the determinants of debt structures among small and medium-sized enterprises (SMEs), integrating financial and organizational variables across a sample of 132 firms. The findings indicate that both financial performance and organizational behavior significantly affect leverage and access to debt. Non-performing firms exhibit higher leverage and lower operational efficiency, while performing firms demonstrate stronger liquidity positions and asset utilization. Ownership structure and gender-based management differences further influence debt behavior, with domestic firms preferring long-term local debt and female or mixed ownership firms maintaining higher security margins. RBF models identify key predictors of short-term and long-term debt, highlighting the complex, multidimensional interaction between firm characteristics and financing patterns. The results provide actionable insights for financial governance, risk management, and policy design.

Suggested Citation

  • Ardita Todri & Petraq Papajorgji, 2025. "Integrating Financial and Organizational Drivers in SME Debt Dynamics: Insights from Radial Basis Function Analysis," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(2), pages 45-58, December.
    • Handle: RePEc:bfb:srdjou:2025-02_4
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    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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