The Bankruptcy Prediction Power of New Entrants

Stef, Nicolae; Jabeur, Sami Ben

doi:10.1080/13571516.2018.1455389

Cited by 9 publications

(9 citation statements)

References 48 publications

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“…The results reveal that new firm creation positively and significantly impacts the bankruptcy rate in the four models where this explanatory variable was introduced. These results are in line with those of Liu (2009); Jardim and Pereira (2013), and Stef and Jabeur (2018). In a sample of 825 French industrial firms, Stef and Jabeur (2018) found that the emergence of new firms positively and significantly impacted firm liquidation and had a strong predictive power.…”

Section: Discussionsupporting

confidence: 87%

“…Superficially, periods of economic growth should favor the creation and development of businesses, leading to fewer legal failures. However, the basic observation is that there is a positive correlation between the growth and suppression rate and the creation and disappearance rate (Dunne, Roberts, & Samuelson, 1989;Stef & Jabeur, 2018). According to Jayet and Torre (1994), the periods and geographic areas with the highest creation rates are also those with the highest exit rates.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The chosen explanatory variables were New Firm Creation (NFC), Gross Domestic Product (GDP), Consumer Price Index (CPI), Money Supply (MS), Interest Rate (IR), Euro Exchange Rate (Eur ER), and Dollar Exchange Rate (USD ER). The literature review suggested that these variables affected the occurrence of bankruptcy (Bhattacharjee, Higson, Holly, & Kattuman, 2004;Everett & Watson, 1998;Hazak & Mannasoo, 2007;Jiang & Jones, 2018;Kristanti et al, 2019;Stef & Jabeur, 2018).…”

Section: Independent Variablesmentioning

confidence: 99%

See 2 more Smart Citations

The Macroeconomic Determinants of Moroccan Corporate Bankruptcy

Zizi

Oudgou²,

Moudden

2022

IJAEFA

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The absence of prior research in Morocco using the macroeconomic explanatory approach to bankruptcy, combined with the new peak in business failure in Morocco in 2021, motivates the need to explore the influence of macroeconomic indicators on the Moroccan bankruptcy rate. Therefore, the objective of this article is to examine the impact of these indicators on the Moroccan bankruptcy rate using multiple regression models over the period 2010-2021. The obtained results show that new firm creation and the interest rate positively and significantly affect the bankruptcy rate, while Euro and Dollar exchange rates have negative and significant effects on the dependent variable. The results suggest guidelines for policymakers and practitioners to refine the economic conditions in order to achieve a low bankruptcy rate in Morocco.

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Section: Discussionsupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

Section: Independent Variablesmentioning

confidence: 99%

See 1 more Smart Citation

The Macroeconomic Determinants of Moroccan Corporate Bankruptcy

Zizi

Oudgou²,

Moudden

2022

IJAEFA

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“…The knowledge within the domain is relatively developed, even though the number of publications in this issue is limited and not often connected to the mainstream research of entrepreneurial finance. Studies in this domain usually pay attention to financial frictions, financial distress, and risk of bankruptcy (Allub and Erosa Etchebehere 2014, Megginson et al 2019, Stef and Jabeur 2018.…”

Section: Main Research Domainsmentioning

confidence: 99%

On the 50-Year Research Landscape of Entrepreneurial Finance: A Sign of Western Ideological Homogeneity?

Nguyen

Pham

et al. 2020

SSRN Journal

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Financing issues play essential roles in the survival and development of entrepreneurial firms. The current study, employing the bibliometric analysis of 6,903 articles from 1970 to 2019, extracted from Web of Science database, aims to provide an overview of the discipline's landscape and major scientific domains to facilitate scientific development within the field. Entrepreneurial finance is a young and growing field with exponential growth in the number of publications (with 19.54% per year) and rising collaboration tendency among authors. Journal of Business Venturing is the most prestigious journal, while Sustainability is noteworthy for its rapid contribution to the field. We also note a sign of Western ideological homogeneity from the collaboration networks and lists of top authors, institutions, and countries. Besides, using keyword co-occurrence analysis, seven major research domains are identified: "venture capital", "crowdfunding", "SMEs finance", "social entrepreneurship finance", "financial risk", "microfinance", and "human-social-financial capital". Based on these findings, we raise the concern of lacking diversity in entrepreneurial finance research and provide several recommendations for future potential research directions.

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“…Similar to Huang, Oua, Chena, and Lin (2006) and Khanna and Palepu (2000), we use ROA to evaluate firm performance. We chose the predictive financial ratios based on their recurrence in literature (Altman, 1968; Delen et al, 2013; Ravi Kumar & Ravi, 2007; Stef & Jabeur, 2018) and a review of organizational performance by Carton and Hofer (2006). We retain the following variables: The leverage ratio, denoted as Leverage , is equal to the ratio of the total liabilities divided by the total assets. The liquidity ratio, denoted as Liquidity , is equal to the value of the firm's current assets divided by the firm's current liabilities. The natural logarithm of the annual gross domestic product per capita of the firm's region is ( LnGDP ). The export ratio, denoted as ( export ), is equal to the value of sales outside France divided by the total sales. The joint‐stock firm variable is as follows: The dummy variable is equal to 1 if the firm is a joint‐stock company (JSC). …”

Section: Empirical Methods and Datamentioning

confidence: 99%

Firm financial performance during the financial crisis: A French case study

Jabeur

Mefteh‐Wali

2020

Int. J Fin Econ

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This study investigates the effect of the 2008 financial crisis on the corporate performance of 805 French firms over the period of 2007–2009. This research uses both ordinary least squares (OLS) and fuzzy set qualitative comparative analysis (fsQCA) to estimate this relationship. The OLS results show no impact of the regional gross domestic product per capita on profitability, whereas the fsQCA suggests several paths for corporate performance. The study offers two principal contributions. Firstly, it takes into account region specificities to assess the impact of the financial crisis on firm performance. Secondly, the study combines an innovative analytical approach, fsQCA, with multivariate regression analysis to analyse firm performance.

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The Bankruptcy Prediction Power of New Entrants

Cited by 9 publications

References 48 publications

The Macroeconomic Determinants of Moroccan Corporate Bankruptcy

The Macroeconomic Determinants of Moroccan Corporate Bankruptcy

On the 50-Year Research Landscape of Entrepreneurial Finance: A Sign of Western Ideological Homogeneity?

Firm financial performance during the financial crisis: A French case study

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