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Loredana Cultrera
 
''Evaluation of bankruptcy prevention tools : evidences from COSME programme''
( 2020, Vol. 40 No.2 )
 
 
We apply propensity-score matching (PSM) in order to qualify the efficiency of SME bankruptcy's preventive rescue plan in a European perspective. PSM has a number of comparative advantages in such analysis, including the need to allow for heterogeneous impacts, while optimally weighting observed characteristics when forming a comparison group. The results show that firms asking for a rescue plan register 5.2% higher chance to survive compared to similar (on some pre-settled characteristics) firms that do not. Deepening our analysis to the specific case of COSME Programme's leading countries, our results show that these countries outperforms Europe, with a SMEs getting 7.7% more chance to remain active.
 
 
Keywords: Bankruptcy, Prevention, European Data, PSM, Rescue Plan
JEL: G3 - Corporate Finance and Governance: General
M4 - Accounting and Auditing: General
 
Manuscript Received : Oct 31 2019 Manuscript Accepted : Apr 15 2020

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