Predicting the failure of the business network in the Valencian community

Abstract

The recent socio-economic and financial crisis that took place globally at the end of the last decade led to an exponential growth in what regards the development of companies with respect to business failure. With this study, by providing empirical evidence in this field of research, the verification of the usefulness of financial information provided by the type of analyzed companies is intended, especially regarding to the role played by the economic and financial ratios facing the possibility that the company suffers financial degeneration processes that lead to failure, and, in some cases, its subsequent disappearance. In order to accomplish this objective, various statistical analysis of a data on a sample of medium, small and micro enterprises belonging to various productive sectors of the Valencian Community will be carried.