AUTHORS: Francesco Ciampi
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ABSTRACT: This study aims to analy e w ether the characteristics of a company corporate social esponsibility (CSR) orientation could improve the accuracy rates of small enterprise (SE) bankruptcy prediction model . A sample made up of 382 Italian SEs is analysed and, by applying ogistic egression, a SE default prediction model is designed using both CSR orientation characteristics and financial ratios as default predictors. The accuracy of this model is then compared to that of a second model based only on financial ratios as predictive variables. The main results are: i) using CSR orientation characteristics significantly improves the effectiveness of SE default prediction modelling; ii) the smaller a firm the higher the increase in the prediction accuracy that can be obtained by using CSR characteristics as default predictors; iii) SE default prediction modelling should be separately implemented for different size groups of firms
KEYWORDS: Corporate social esponsibility, Financial ratios, Bankruptcy, Credit rating, Default prediction modelling, Small enterprise
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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 15, 2018, Art. #13, pp. 113-127
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