THE IMPACT OF EXTERNAL FACTORS ON THE DECISION TO GRANT A LOAN. A CASE STUDY ON ROMANIAN BANKS

  • Găban Lucian “1 Decembrie 1918” University of Alba Iulia

Abstract

The objective of this study is to identify external factors having a significant impact on the probability of granting a loan, and to construct a credit scoring model for small and medium enterprises. Applying the logit analysis, we have found three external predictors which characterize the firm's financial condition. These predictors are as follows: EBITDA, ROI, and CR, and they influence the decision to grant a loan. The significant non-linear effects improve the quality and prediction power of the model. These external factors predict 85 percent, a high percentage of correctly classified observations.
Published
2016-06-30
How to Cite
LUCIAN, Găban. THE IMPACT OF EXTERNAL FACTORS ON THE DECISION TO GRANT A LOAN. A CASE STUDY ON ROMANIAN BANKS. Annales Universitatis Apulensis Series Oeconomica, [S.l.], v. 1, n. 18, p. 15-25, june 2016. ISSN 2344-4975. Available at: <http://journals.uab.ro/index.php/oeconomica/article/view/203>. Date accessed: 22 jan. 2019.