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- W3183307477 abstract "The purpose of this study is to examine the impact of both firm-specific and macroeconomic factors on the financial distress risk of the firms listed in the Borsa Istanbul Small and Medium Enterprises (SMEs) Industrial Index over the period from 2010 to 2019. Generalized Method of Moments (GMM) estimator is used to determine the potential impact of firm-specific and macroeconomic factors on financial distress risk. The dependent variable used in the study is financial distress risk measured by Springate S score. This study considers the independent variables by incorporating both firm-specific (current ratio, quick ratio, asset turnover, debt ratio, financial leverage, and return on assets) and macroeconomic factors (economic growth, exchange rate, and inflation rate) in the analysis of financial distress risk. The empirical results show that the current ratio, quick ratio, asset turnover, debt ratio, financial leverage, and return on assets have a statistically significant positive impact on financial distress risk. On the contrary, the findings document a negative association between percentage change in the consumer price index and financial distress risk. To the best of the author's knowledge, this is one of the several studies seeking to identify the determinants of financial distress risk for Turkish SMEs by considering both firm-specific ratios and macroeconomic indicators with panel data analysis (generalized method of moments). This study may be extendable to be used by SMEs and may provide a remarkable resource for them. Also, the obtained results equate numerous practical implications nominately for the executives of SMEs as mentioned in the conclusion part of the study." @default.
- W3183307477 created "2021-08-02" @default.
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- W3183307477 date "2021-06-01" @default.
- W3183307477 modified "2023-09-27" @default.
- W3183307477 title "The Impact of Firm-Specific and Macroeconomic Factors on Financial Distress Risk: A Case Study from Turkey" @default.
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- W3183307477 doi "https://doi.org/10.13189/ujaf.2021.090325" @default.
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