Financial leasing in Albania and the impact that internal factors of a SME would have on the probability to be financed by lease

Variables in the equation	B	SE	Wald	Sig.	Exp (B)
Sector	0.289	0.510	0.322	0.571	1.335

Recognition index	0.906	0.284	10.173	0.001	2.474

Need_for_financing	0.882	0.263	11.287	0.001	2.416
Constant	−1.222	1.982	0.380	0.538	0.295

Elements of index – knowing the advantages of leasing	Factors
Leasing other than credit removes the risk of the facility being outdated.	0.659

The legal consequences in case of bankruptcy are less with the leasing.	0.724

Lease terms are more favourable than credit.	0.773

Leasing contracts are generally less restrictive.	0.771

The advantage of taxation is the biggest advantage of leasing.	0.698

Leasing enables 100% down payment financing.	0.474
Contracting costs are lower in the case of leasing than credit.	0.716

Variable	Conceptualisation and operationalisation of the variable	Measurement method and transformations
Leases	International Accounting Standards, IAS17	Binary, 1 = firm used leasing, 0 = firm did not use leasing

Need for financing	Single-item measure that describes the experience of financing a business from others (never; only once at first; when I needed it, but only to relatives; whenever I needed it)	Scalar – indicates the frequency of business financing, 1 = very low to 4 = very high

Index of recognising the advantages of leasing	Leasing other than credit removes the risk of aging the object. The legal consequences in case of bankruptcy are less with the leasing. Lease terms are more favourable than credit. Leasing contracts are generally less restrictive. The advantage of taxation is the biggest advantage of leasing. Leasing enables 100% down payment financing. Financing costs are lower when leasing than a loan^a	Index created from recoded elements as an ordinal variable (1 = not at all, 4 = very much agree)
Sectors	Production or services	Binary, 1 = production, 0 = services

Variable	Age (Ln)	Income (Ln)	Number of employees (Ln)	Value of assets (Ln)	Need for financing	Leasing recognition index
Need for funding	0.022	0.061	0.065	0.109	1.000
Leasing Recognition Index	0.229^**	0.112	0.017	0.203^*	0.013	1.000

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Argomenti della rivista:: Economia e business, Economia politica, Politica economica, Teoria economica, sistemi e strutture, Microeconomia, Macroeconomia