Financial performance analysis of guaranteed firms using propensity scores Nam, Joo-Ha; Kim, Jung-Ryol; Noh, Maengseok;
In this paper, we examine the financial performance of credit guarantee programs. We compared financial performance of guaranteed firms of KODIT and non-guaranteed firms. The of covariate adjusted propensity score method is used because a selection bias problem could occur if t-test or regression analysis were used. The results show that a credit guarantee program enhances the financial performance of beneficiary firms.
Alam, M., Noh, M., and Lee, Y. (2013). Likelihood estimate of treatment effects under selection bias, Statistics and Its Interface, 6, 349-359.
Garen, J. (1984). A selectivity bias approach with a continuous choice variable, Econometrica, 52, 1199-1218.
Glynn, A. N. and Quinn, K. M. (2009). An introduction to the augmented inverse propensity weighted estimator, Political Analysis, 18, 36-56.
Heckman, J. J. and Smith, J. (1999). The pre-program earnings dip and the determinants participation in a social program: implication for simple program evaluation strategies, Economic Journal, 109, 313-348.
Heckman, J. J., Tobias, J. L., and Vytlacil, E. (2003). Simple estimator for treatment parameters in a latent-variable framework, Review of Economical Statistics, 85, 748-755.
Hirano, K. and Imbens, G. W. (2004). The propensity score with continuous treatments in Gelman, A. and Meng, X. (eds.), Applied Bayesian Modeling and Causal Inference from Incomplete-Data Perspectives, Wiley.
Iichiro, U., Koji, S., and Yamashiro, G. M. (2006). Effectiveness of credit guarantees in the Japanese loan market, RIETI Discussion Paper Series, 06-E-004.
Kim, S. and Kim, J. R. (2013). A study on the performance measurement of credit guarantee, Korean Industrial Economic Association, 26, 1381-1399.
Rosenbaum, P. R. and Rubin, D. (1983). The central role of the propensity score in observational studies for causal effects, Biometrika, 70, 41-55.
Rubin, D. (1978). Bayesian inference for causal effect: the role of randomization, Annals of Statistics, 6, 34-58.