Valeria Scherger, Antonio Terceño and Hernán Vigier
The purpose of this paper is to develop a goodness index based on Hamming distance and ordered weighted averaging distance (OWAD), which is useful to make decisions. These…
Abstract
Purpose
The purpose of this paper is to develop a goodness index based on Hamming distance and ordered weighted averaging distance (OWAD), which is useful to make decisions. These alternative measures enrich the results of diagnostic fuzzy models and facilitate the experts’ task in decision-making. An application to a set of firms to verify the results is also presented.
Design/methodology/approach
The paper follows the basis of OWA operators to design a methodology to reduce the map of causes of business failure into monitoring key areas.
Findings
The present paper introduces two alternative measures to test the proposal of grouping. In the empirical application, the superiority of the minimum T-norm over other decision rules is verified. The ordered weighted averaging distance (OWAD) goodness index predicts a better adjustment over the index built using OWA and Hamming distance measures.
Practical implications
A useful mechanism to reduce the map of causes or diseases detected in key areas is added through this analysis. At the same time, these key areas can be disaggregated once some alert indicator is identified; this allows knowing the causes that require special attention. This application of OWA can encourage the development of suitable computer systems for monitoring the firm’s problems, alerting regarding failures and easing decision-making.
Originality/value
A comparison of grouping causes into key areas through a goodness index based on Hamming distance and OWAD is proposed. These contributions enrich the Vigier and Terceño (2008) model and could be applied to any model of fuzzy diagnosis to test the results.
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Anahi Briozzo and Hernán Vigier
The purpose of this paper is to study the determinants of the use of personal loans in small and medium‐sized enterprises (SMEs).
Abstract
Purpose
The purpose of this paper is to study the determinants of the use of personal loans in small and medium‐sized enterprises (SMEs).
Design/methodology/approach
Personal loans are addressed as a function of the borrower and collateral. To empirically test the hypothesis of this study, a probit model was applied to a group of companies in Bahia Blanca, Argentina, with a previous analysis of the possible effects of sample selection.
Findings
Older companies, firms with lower expected growth rates, younger owners, those who seek to create value or growth, and owners who perceive low emotional costs associated with bankruptcy, are less likely to use personal loans to finance their operations.
Research limitations/implications
This study is limited by the availability of data on SMEs in Argentina.
Social implications
The results highlight the importance of financial aid programmes that focus on SME scarce availability of collateral.
Originality/value
This study makes three principal contributions: first, it investigates the phenomenon of personal loan utilisation in SMEs; second, it analyses financing decisions from both the supply and demand perspectives; and third, it presents a database that includes variables that have not been previously studied in Argentina or other emerging economies.
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José M. Merigó, Salvador Linares-Mustarós and Joan Carles Ferrer-Comalat
Hernan Ramirez-Asis, Jorge Castillo-Picon, Jenny Villacorta Miranda, José Rodríguez Herrera and Walter Medrano Acuña
Financial inclusion in Peru has been addressed through coverage, quality of financial services, movement of transactions, and service points. The purpose of this chapter is to…
Abstract
Financial inclusion in Peru has been addressed through coverage, quality of financial services, movement of transactions, and service points. The purpose of this chapter is to evaluate for the department of Ancash, Peru, the link between financial inclusion and its socioeconomic factors. Socioeconomic variables and financial inclusion of the Ancash department of the National Household Survey are taken as indicators, later contrasted through the logit model, with the financial inclusion variable being the explained variable.
There is evidence of positive and negative relationships between financial inclusion and socioeconomic variables; these are important components for planning financial inclusion. Raising the levels of formal employment, the educational level and considering the area of residence would be a strategy to generate a dynamic of inclusion in the department of Ancash.