Kanitsorn Terdpaopong. Complete Research Report research project financial distress prediction medel for Thai and Chinese SMEs. (). Rangsit University. Rangsit University Library. : , 2010.
Complete Research Report research project financial distress prediction medel for Thai and Chinese SMEs
Abstract:
In this paper an empirical study of the financial characteristics of Thai and Chinese Small and Medium-sized Enterprises (SMEs) is presented. The samples of the study were selected from the Market for Alternative Investment (MAI) of the Stock Exchange of Thailand and the Shenzhen Stock Exchange, China, and, both of which cater for SMEs. Samples were drawn for non-financially distressed SMEs, which comprised the vast majority. Another set of samples was also drawn of a small, but important subset of financially distressed firms. The financial characteristics, in the form of fourteen ratios, of all samples were analysed using parametric and non-parametric tests in order to determine the extent of differences between Thai and Chinese SMEs. The results showed an important similarity in that both Thai and Chinese SMEs have low levels of long-term debt. There were significant differences between Thai and Chinese non-financially distressed SMEs in terms of asset structure, total debt, asset turnover, interest, tax and profit. There were fewer differences between Thai and Chinese financially distressed SMEs, which suggest that the effects of distress are universal, the most
notable significant difference being the lower profit for Thai distressed SMEs due to higher
interest charges. These results have useful implications for stakeholders in SMEs in both
countries.