1. Corporate governance characteristics of SMEs’ information disclosure violations
Co-author María-del-Mar Camacho-Miñano
The objective of the paper is to analyse how corporate governance characteristics associate with information disclosure violations in SMEs. We use the population of SMEs from Estonia, in total 77,212 unique firms, and logistic regression analyses. Our results indicate that the presence of woman in the board, higher manager’s age, longer tenure and larger share of stock owned by board members lead to violating the annual report submission deadline less, but in turn larger boards, presence of more business ties and presence of majority owner behave in the opposite way. We also provide results in respect to severity of delay, firm age and size, which all indicate varying significance or magnitude of the corporate governance variables.
2. Tax arrears versus financial ratios in bankruptcy prediction
Co-author Art Andresson
This paper aims to compare the usefulness of tax arrears and financial ratios in bankruptcy prediction. The analysis is based on the whole population information about Estonian bankrupted and survived firms from 2011 to 2017. The results obtained with logistic regression and multilayer perceptron indicate that closer to bankruptcy, tax arrears information yields to a higher prediction accuracy than financial ratios. A combined model of tax arrears and financial ratios is more useful than the individual models. The results enable to outline several theoretical and practical implications.