Determinants of financial insolvency in natural stone companies in Spain and Italy
DOI:
https://doi.org/10.18046/j.estger.2024.172.6553Keywords:
financial insolvency, financial ratios, logit model, rentability, natural stoneAbstract
This research aimed to determine the factors that predict financial insolvency scenarios in natural stone companies operating in Spain and Italy. The analysis was carried out in 173 Spanish and 225 Italian companies over a period between 2012 and 2020. Using a logistic regression model, the study identified that negative results from the previous year, current liquidity, indebtedness, and the age of the companies have a positive and significant impact on the probability of experiencing financial distress, while efficiency in asset management has a negative relationship with this probability. These findings underline the need for careful and strategic financial management to prevent financial difficulties.
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