This paper asks how well the use of quantitative and qualitative variables can improve the assessment of companies' creditworthiness and how this result can be influenced by the economic and financial peculiarities of countries. We harden qualitative variable measures to model soft information aimed at scoring microfirms, small, and medium-sized firms. The structural survey covers Germany, Italy, and the UK in a sample of about 17 thousand companies observed during the financial crisis. Soft facts are determined within the balanced scorecard framework in order to find out the impact of customers, business processes, learning and growth, and financial perspectives. Our findings show that credit models integrating soft variables optimize the risk estimation, but estimates are country-specific and should be tailored to the characteristics of each economic system.
Modeling hard and soft facts for SMEs: some international evidence
Gabbi, Giampaolo
2019
Abstract
This paper asks how well the use of quantitative and qualitative variables can improve the assessment of companies' creditworthiness and how this result can be influenced by the economic and financial peculiarities of countries. We harden qualitative variable measures to model soft information aimed at scoring microfirms, small, and medium-sized firms. The structural survey covers Germany, Italy, and the UK in a sample of about 17 thousand companies observed during the financial crisis. Soft facts are determined within the balanced scorecard framework in order to find out the impact of customers, business processes, learning and growth, and financial perspectives. Our findings show that credit models integrating soft variables optimize the risk estimation, but estimates are country-specific and should be tailored to the characteristics of each economic system.File | Dimensione | Formato | |
---|---|---|---|
Gabbi - Modeling hard and soft facts for SMEs Some international evidence.pdf
accesso aperto
Descrizione: article
Tipologia:
Pdf editoriale (Publisher's layout)
Licenza:
Creative commons
Dimensione
988.21 kB
Formato
Adobe PDF
|
988.21 kB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.