Protecting the Supply Chain: Differentiating Financial Distress at Large and Small Suppliers
Posted: 27 May 2009 Last revised: 5 Dec 2012
Date Written: May 25, 2009
The paper examines whether it is better to separate a model/sample to account for differences between large and small firms when developing a predictive tool to identify which companies are likely to become distressed, and therefore at risk to the supply chain. Previous research has scaled data by size of company but has not considered whether the process leading to financial distress may be different depending on firm size.
Keywords: failure, early warning, supply chain protection, automobile supplier, automobile OEM
JEL Classification: G33, C12, C20, M20, M11
Suggested Citation: Suggested Citation