An Analysis of Factors Affecting Credit Scoring Performance in SMEs

Year 2019, Volume: 19 Issue: 2, 159 - 171, 30.04.2019

Ebru Saygılı , Arikan Tarik Saygılı , Gokhan Isık

https://doi.org/10.21121/eab.526093

Cited By: 1

Abstract

In small and medium enterprises (SMEs), both financial and non-financial
indicators related to the company and the large shareholder have significant
effects on credit scores. This study explores the hybrid nature of SME credit
scoring systems by developing an SME credit scoring model with general
indicators, financial indicators and intelligence indicators related to the
company and the major shareholder. This study is the first to explore the
effect of intelligence indicators in credit scoring. It used regression
analysis to evaluate real data from 125 SMEs operating in Turkey. Of 17
independent variables, 9 had statistically significant relationships with SME
credit scores. The paper includes a comprehensive discussion of the implications
of these findings. 

Keywords

Credit Scoring, Small and Medium Enterprises (SMEs), Multiple Regression

References

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