Credit Risk Measurement of SMEs
affiliation not provided to SSRN
April 1, 2011
Purpose – The purpose of this paper is to discuss important aspects concerned with credit risk measurement of SMEs.
Methodology - Paper presents theoretical study, based on literature review and summary of findings of similar research papers, which have focused on credit risk assessment of SMEs.
Research Findings - Research identifies and discusses five distinctive aspects of risk assessment practice: choice of models, rating philosophy and time horizon, default definition, determinants of default and dataset issues.
Research limitations – Paper is theoretical and does not present an empirical study or analysis of numerical data. It restricts itself with analysis of the above five points only.
Practical implications – Paper considers frequent problems encountered when dealing with each of the five points in consideration, which impact the model structure and assumptions.
Value – Paper discusses possible remedies and applications to the highlighted problems given characteristics and specifics of SMEs.
Number of Pages in PDF File: 14
Keywords: SME finance, credit risk, bankruptcy
JEL Classification: L11, D81, D82, G21, G24, G28, G32, G33working papers series
Date posted: March 8, 2012
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