The impact of size and age of the company on assessing financial risk.


Autoria(s): Pereira, José; Basto, Mário; Silva, Amélia
Data(s)

2014

Resumo

Textiles and tourism sectors are two important sectors in Portuguese economy. Its high exposure to both internal and international economy volatility transform the companies operating in these economic sectors especially vulnerable to recent economic crises in Portugal and European Union. The objective of this paper is to evaluate and understand the impact of size and age on the financial health of textile and tourism companies, measured by economic indices. An empirical based model is proposed. Its implications are derived and tested on a sample of 4061 Portuguese companies from textile and tourism sector, during the period 2005-2009. The results conclude that age has a stronger impact on the risk of failure than size. Whereas the effect of age is generally positive regarding the financial health of the company, the effect of size is less clear and depends on the age of the company.

Formato

application/pdf

Identificador

978-972-8793-65-4

http://hdl.handle.net/11110/1001

Idioma(s)

eng

Direitos

info:eu-repo/semantics/openAccess

Palavras-Chave #age, size, business failure, textiles and tourism.
Tipo

info:eu-repo/semantics/article