Predicting SME Insolvency in Sub-Saharan Africa: A Cameroonian Evidence

Predicting SME Insolvency in Sub-Saharan Africa: A Cameroonian Evidence

Romuald Kenmoe Siyou

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Marius Ayou Bene

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Cyrille Onomo

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University of Douala

Predicting SME Insolvency in Sub-Saharan Africa: A Cameroonian Evidence

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Abstract

This paper aims to propose a model for predicting SME insolvency in the Sub-Saharan context. Based on a sample of 1183 Cameroonian SMEs from 2013 to 2015, we performed a logistic regression in panel data. The results show a persistence of insolvency over time when effected in an SME. It is also seen in the results that SME insolvency is determined by financial variables related to business management, financial structure, and profitability. On the other hand, it is determined by non-financial variables such as management quality, staff compensation, and SME size, which reinforce the power of insolvency prediction models. However, some determinants of insolvency in small firms are insignificant in medium-sized firms.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Romuald Kenmoe Siyou. 2026. \u201cPredicting SME Insolvency in Sub-Saharan Africa: A Cameroonian Evidence\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 22 (GJMBR Volume 22 Issue C1).

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GJMBR Volume 22 Issue C1

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification JEL Code: G33

M41

C25

Submission ReceivedDecember 12, 2021
Peer Review Double Blind
Handling Editor
Accepted January 6, 2022
Published January 20, 2022

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February 18, 2022

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