Faedpyme International Review (Jul 2014)
Prediction Model for Bankruptcy in Micro and Small Enterprises (MSEs)
Abstract
The main purpose of this research is to validate and improve the Weighted Ratio Valuation Model (RPV) model in micro and small enterprises in Central Mexico, in order to propose an alternative to financial valuation methods to anticipate bankruptcy in this sector of the economy. To achieve this objective, the study proposes the empirical application of Mosqueda 2010. The results shed important information that allowed the identification of variables that lead to bankruptcy, making risk detection more accurate, which, in turn, made it possible to validate and consolidate the model.
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