Default Risk Assessment of Tunisian SMEs: Multiple Criteria Decision Making Approaches

Salah BEN HAMAD, Nesrine TURKI

Abstract


The default risk is a reality as well for the companies as for the economy of a country. This paper has highlighted the fact that in spite of the many incentives to promote Tunisian SMEs, creation of these companies remains below expectations. Thus, a study assessing the risk of failure is imperative. A multicriteria methodology of decision-making in a sample of 41 small and medium-sized enterprises used financing by the Tunisian Solidarity Bank (BTS) as one of the financial support structures relative to investment credits. The results showed that the application of a policy of caution (pessimistic procedure) in the granting of loans by the BTS is the main obstacle to the creation, development and sustainability of the Tunisian SMEs.


Keywords


default risk; Tunisian SMEs; Tunisian Solidarity Bank (BTS); ELECTRE III and ELECTRE TRI.

Full Text:

PDF

References


Adair (P.) et Fhima (F.). (2009), Accès au crédit et promotion des PME en Tunisie. 5th International Conference on Finance, March 11-13, Hammamet, Tunisie, Euro-Mediterranean Economics and Finance Review 2009, Vol. 4, 3, Third Quarter, pp. 26-52.

Armour, J. et Cumming, D. (2005), Bankruptcy Law and Entrepreneurship. American Law and Economics Review Forthcoming.

Audretsch D.B. (2002), The Dynamic Role of Small Firms: Evidence from the U.S., Small Business Economics, 18(1-3), pp. 13-40.

Altman E.I., Marco G. et Varetto F. (1994), Corporate distress dignosis : Comparisons using linear discriminant analysis and neural networks (The Italien experience). Journal of banking and finance (1994), vol.18, p.505-529.

Ang J.S (1992), On the theory of finance for private held firms. The Journal of Small Business Finance, vol. 1, p. 185-203.

Ang J.S. (1991), Small business uniqueness and the theory of financial management. The Journal of Small Business Finance, vol.1, p. 1-13.

Altman E. I. (1983), Corporate Financial Distress, A complete Guids to predicting, avoiding and dealing with Bankruptcy. John Wiley, New York 1983.

Berger, A.N., Rosen, R.J., Udell, G.F, (2007), Does market size structure affect competition? The case of small business lending. Journal of Banking and Finance 31, p.11-33.

Belz L. et Gauthier O. (2000), Innovation et croissance économique : rôle et enjeux du financement des PME. Revue Internationale PME 2000, 13(1), pp. 1-16.

Berger A. et Udell G. (1998), The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance, vol. 22, p. 613-673.

Bouyssou D et Roy B, (1987), La notion de seuils de discrimination en analyse multicritère, INFOR, Vol. 25,4, 302-313.

Cole R., Goldberg L. et White L. (2004), Cookie-cutter versus character: the micro structure of small business lending by large and small banks. Journal of Financial and Quantitative Analysis, vol.39, p. 227-252.

Crucifix. F et Derni. A. (1993), Symptômes de défaillance et stratégie de redressement de l’entreprise. Aux Edition Maxima. Paris, 1993, p18-21.

Conan. J et Holder. M. (1979), Variables explicatives des performances et contrôle de gestion dans les PME. Thèse d’Etat, université de Paris-Dauphine, 1979.

Collongues Y. (1977), Ratios financiers et prévision des faillites des petites et moyennes entreprises. Revue banque (1977), n°365, p.963-970.

Daily C.M., Dalton D.R. et Cannella A.A., (2003), Corporate Governance: Decades of Dialogue and Data. Academy of Management Review, vol. 28, n° 3, p. 371-382.

Edwards T., Delbridge R. and Munday M. (2005), Understanding innovation in small and medium-sized enterprises: a process manifest, Technovation. 25(10), pp. 1119-1127, 2005.

Ebaid, I.E.S. (2009), “The impact of capital-structure choice on firm performance: empirical evidence from Egypt”, The Journal of Risk Finance, Vol. 10 No. 5, pp. 477-487.

Gallina A. (2002), SMEs Contribution to the Creation of the Euro-Mediterranean Region, ERF Working Papers Series, Working Paper 0106.

Hallberg K. (2000), A Market-Oriented Strategy for Small and Medium-Scale Enterprises, IFC Discussion Paper 48.

Jensen M. (1986), Agency Costs of Free Cash Flow, Corporate Finance and Takeovers. American Economic Review, vol. 76, n° 2, p. 323-329.

Jensen M. et Meckling W. (1976), Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, vol. 3, p. 78-133.

Koenig. G. (1985), Entreprises en difficultés: des symptômes aux remèdes. Revue Française de Gestion, Janvier-Fevrier 1985.

Lee, S., Yamakawa, Y. & Peng, M. (2007), Entrepreneurship and the Barrier to Exit: How Does an Entrepreneur-Friendly Bankruptcy Law Affect Entrepreneurship Development at a Societal Level?. Working paper (2007).

Lawless, R. et Warren, E. (2005), Myth of the Disappearing Business Bankruptcy. California Law Review 93: 743.

Leland, H. et Pyle D. (1977), Informational Asymmetries, Financial Structure, and Financial Intermediation. The Journal of Finance 32, p. 371-387. 1977.

Mousseau V. et Slowinski R. (1998), Inferring an ELECTRE TRI Model from Assignment Examples », Journal of Global Optimization, 12, p.157–174.

Myers S. et Majluf N. (1984), Corporate financing and investment decisions when firms have information that investor do not have. Journal of Financial Economics, vol. 13, p. 187-221.

Nahmias .L. (2005), Impact économique des défaillances d’entreprise. BULLETIN DE LA BANQUE DE FRANCE – N° 137 – MAI 2005.

Roy B. (1988), Des critères multiples en recherche opérationnelle : pourquoi ?, in RAND G.K. (éd), Operational Research 87, Elsevier Science Publishers B.V. (North-Holland), p. 829-842.

Roy B. (1985), Méthodologie multicritères d’aide à la decision, Paris, Ed. Economica, 1985.

Roy B. (1978), Un algorithme de classement fondé sur une représentation floue des préférences en présence de critères multiples, Cashier du centre d’Etudes de Recherche Opérationnelle, Vol. 20, 3-24.

Sharabany R. (2004), Business failures and macroeconomic risk factors. Discussion Papier N°2004.06, Bank of Israel, Research Department (2004).

Stephen Letza James Kirkbride Xiuping Sun Clive Smallman, (2008),"Corporate governance theorising

Sadeghian, N.S., Latifi, M.M., Soroush, S. and Aghabagher, Z.T. (2012), “Debt policy and corporate performance: empirical evidence from Tehran Stock Exchange companies”, International Journal of Economics and Finance, Vol. 4 No. 11, pp. 217.

Smith, Clifford W. et Jerold B. Warner. (1979), On financial contracting: An analysis of bond covenants. Journal of Financial Economics, June: pp 117-61.

Varun Dawar , (2014),"Agency theory, capital structure and firm performance: some Indian evidence", Managerial Finance, Vol. 40 Iss 12 pp. 1190 - 1206

Vincke P. (1989), L’aide multicritère à la décision. Bruxelles: Université libre de Bruxelles ; Paris (1989).

Ye (George) Jia. (2009), The Impact of Personal Bankruptcy Law on Entrepreneurship. University of Western Ontario. October 21, 2009

Yu W. (1992), ELECTRE TRI : Aspects méthodologiques et manuel d’utilisation », Document de Lamsade n°74, Université de Paris-dauphine, 1992.




DOI: http://dx.doi.org/10.18533/job.v1i2.16

Refbacks

  • There are currently no refbacks.


Copyright (c) 2016 Journal of Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.