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Evaluation of bankruptcy prevention tools : evidences from COSME programme

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  • Loredana Cultrera

    (University of Mons - Warocqué School of Business and Economics - humanOrg and Risk Research Centers)

Abstract

We apply propensity-score matching (PSM) in order to qualify the efficiency of SME bankruptcy's preventive rescue plan in a European perspective. PSM has a number of comparative advantages in such analysis, including the need to allow for heterogeneous impacts, while optimally weighting observed characteristics when forming a comparison group. The results show that firms asking for a rescue plan register 5.2% higher chance to survive compared to similar (on some pre-settled characteristics) firms that do not. Deepening our analysis to the specific case of COSME Programme's leading countries, our results show that these countries outperforms Europe, with a SMEs getting 7.7% more chance to remain active.

Suggested Citation

  • Loredana Cultrera, 2020. "Evaluation of bankruptcy prevention tools : evidences from COSME programme," Economics Bulletin, AccessEcon, vol. 40(2), pages 978-988.
    • Handle: RePEc:ebl:ecbull:eb-19-00962
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    References listed on IDEAS

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    Cited by:

    1. Lisa Crosato & Josep Domenech & Caterina Liberati, 2024. "Websites’ data: a new asset for enhancing credit risk modeling," Annals of Operations Research, Springer, vol. 342(3), pages 1671-1686, November.
    2. Edward I. Altman & Marco Balzano & Alessandro Giannozzi & Stjepan Srhoj, 2023. "Revisiting SME default predictors: The Omega Score," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(6), pages 2383-2417, November.
    3. Crosato, Lisa & Domenech, Josep & Liberati, Caterina, 2021. "Predicting SME’s default: Are their websites informative?," Economics Letters, Elsevier, vol. 204(C).
    4. Monia Antar & Tahar Tayachi, 2025. "Partial dependence analysis of financial ratios in predicting company defaults: random forest vs XGBoost models," Digital Finance, Springer, vol. 7(4), pages 997-1012, December.

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    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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