Assessing Risk Factors Of Business Failure In The Manufacturing Sector: A Count Data Approach From Sweden
2015 (English)In: International Journal of Economics, Commerce and Management, ISSN 2348-0386, Vol. III, no 9, 42-62 p.Article in journal (Refereed) Published
The paper investigates risk factors of business failure of small-sized manufacturing firms in Sweden. Traditionally, linear models are applied to estimate the influence of risk factors on business failure by using continuous data. By contrast, in this study a count data approach is employed to deduce consistent Poisson, Quasi-Poisson, and Negative-Binomial estimators by using bankruptcy count data of small-sized Swedish manufacturing firms. Findings confirm that interest and exchange rates are significant determinants of business failure. Moreover, we found that openness is a determinant of business success. Our main finding highlights the role of business productivity, which turned out to be the main risk factor of business failure.
Place, publisher, year, edition, pages
United Kingdom , 2015. Vol. III, no 9, 42-62 p.
IdentifiersURN: urn:nbn:se:miun:diva-25871OAI: oai:DiVA.org:miun-25871DiVA: diva2:853902