SMEs Behavioral Models of Risk-Adjusted Performance (A cross-sectoral empirical inquiry from Albanian market).

Abstract

INTRODUCTION: This research study assesses into a business intelligence prospect the performance of SMEs operating in Albanian market and pertaining to trade, service, production and construction sectors. OBJECTIVE: MATERIALS AND METHODS: In this light the research put confidence on SMEs organizational behavioral features interacting with financial ratios regarding their performance prediction (estimated through: return on assets, return on equity and gross operative margin) in a cross-sectoral context. On this purpose there are analyzed five qualitative variables and forty one quantitative data (concerning: liquidity/16, operational efficiency/12, risk/6 and growth areas /7). These analyses were conducted through a radial basis function at 95% confidence level referring to a sample of 33 SMEs in each sector. RESULTS: The prediction of SMEs performance in a cross-sectoral context revealed as main determinant factors: the long-term debts to equity ratio, interest coverage ratio (leverage area), inventories, payments accounts turnover ratio (liquidity area), firm age (growth area), ownership gender, equity origin, borrowers’ status and business ownership structure (organizational behavioral features). CONCLUSIONS: The study highlights the fact that operating through certain levels of relevant indicators (pertaining to liquidity, leverage and growth areas) fosters business performance meanwhile the contrary results risky. Moreover, it is also evidenced the importance of some organizational behaviors that proactively help in the further development of this productive research area.