Template-Type: ReDIF-Paper 1.0
Author-Name: Eleonora Bartoloni
Author-X-Name-First: Eleonora
Author-X-Name-Last: Bartoloni
Author-Email: eleonora.bartolon@istat.it
Author-Workplace-Name: DISCE, Università Cattolica
Author-Name: Maurizio Baussola
Author-X-Name-First: Maurizio
Author-X-Name-Last: Baussola
Author-Email: maurizio.baussola@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Title: Financial performance in manufacturing firms: a comparison between parametric and non parametric approaches
Abstract: This paper provides a methodological analysis of credit risk in manufacturing firms by using two different credit scoring approaches. The
first is the traditional discriminant approach (DA) for bankruptcy prediction based on a logistic regression model, whereas the second, Data
Envelopment Analysis (DEA), is a non-parametric approach for measuring firms’ efficiency which do es not require ex-ante information on
bankrupted firms. By using a manufacturing sample of both healthy and bankrupted firms during the period 2003-2009 we provide an in-depth
comparison of DA and DEA and conclude that a correct evaluation of firms’ credit worthiness is the result of successive fine tuning
procedures requiring the use of multiple methodological tools.
Length: 33 pages
Creation-Date: 2012-05
Publication-Status: 
File-URL:  http://www.unicatt.it/dipartimenti/DISES/allegati/dises1282.pdf
File-Format: Application/pdf
File-Function: First version, 2012
Number: dises1282
Classification-JEL: G32, O32, L25
Keywords: Bankruptcy, Discriminant Analysis, Data Envelopment, Analysis, Credit rating
Handle: RePEc:ctc:serie2:dises1282