Theoretical and Applied Economics
No. 3 / 2016 (608), Autumn
Assessment of the bankruptcy risk based on the solvency ratio
West University of Timisoara, Romania
Abstract. The current paper sets to develop a methodology for assessing the bankruptcy risk for Romanian companies based on the solvency ratio. A previous study performed over a paired sample of 1176 Romanian companies showed that the solvency ratio had potential for predicting bankruptcy, but was not able to set a benchmark because of the differences between the structure of the paired sample and the structure of the population. The present research was performed over a larger sample, that included 53252 yearly financial statements and that was similar in structure to the entire population of Romanian companies. The results allow for the proposal of a methodology for assessing the bankruptcy risk based on risk classes.
Keywords: ratio analysis, financial statements, corporate finance, accuracy, benchmark, risk classes.
Contents
- RASDAQ: The final curtain
Cornelia POP
Cristina BALINT
Maria-Andrada GEORGESCU
Ioan Alin NISTOR
- The relationship between public expenditure and economic
growth in Romania: Does it obey Wagner’s or Keynes’s Law?
Lingxiao WANG
Adelina DUMITRESCU PECULEA
Handuo XU
- Cracks in BRICs: A sectoral financial balances analysis
and implications for macroeconomic policy
Sashi SIVRAMKRISHNA
- An empirical study of factors influencing total unemployment
rate in comparison to youth unemployment rate
in selected EU member-states
Filip KOKOTOVIĆ
- Determinants of sovereign bond yields
in emerging economies: Some panel inferences
Sri Hari NAIDU. A
Phanindra GOYARI
Bandi KAMAIAH
- Investment funds and portfolio of loan guarantees
as financial steps proposals to support innovative
Small and Medium Enterprises
Mădălina Gabriela ANGHEL
Constantin ANGHELACHE
Daniel DUMITRESCU
- Dynamic relationship among foreign direct investments,
human capital, economic freedom and economic growth:
Evidence from panel cointegration and panel causality analysis
Oktay KIZILKAYA
Ahmet AY
Gökhan AKAR
- Integrating the issue of infrastructural investment
with economic growth: The case of India
Mukul GUPTA
Rahul BUDHADEV
Varun CHOTIA
N V Muralidhar RAO
- Globalization of the corruption phenomenon –
human capital gone wild
Dumitru-Alexandru BODISLAV
Ciprian ROTARU
Raluca GEORGESCU
- Predicting probability of default of Indian companies:
A market based approach
Bhanu Pratap SINGH
Alok Kumar MISHRA
- Statistical-econometric model used to analyze
the operational and insolvency risks
Constantin ANGHELACHE
Alexandru MANOLE
Mădălina Gabriela ANGHEL
Diana Valentina SOARE
- Short and long term analysis of some factors effecting youth
unemployment in Turkey
Rıza BAYRAK
Halim TATLI
- Determining the causal relationships among entrepreneurship,
educational attainment and per capita GDP in high-income
OECD countries
Feyza BALAN
Seda OZEKICIOGLU
Cuneyt KILIC
- Assessment of the bankruptcy risk
based on the solvency ratio
Daniel BRÎNDESCU-OLARIU
- Using simulation and modeling to improve career management
processes in organizations
Nicoleta Valentina FLOREA
- Commodity market integration and price transmission:
Empirical evidence from India
Pratap Kumar JENA
- Testing the relationship between military spending and private
investments: Evidence from Turkey
Gülbahar ÜÇLER
- Growth-finance nexus:
Empirical evidence from India
Tanzeem HASNAT
Shahid ASHRAF
Umer J. BANDAY
- Net earnings trends in the EU countries
Mădălina Ecaterina POPESCU
Amalia CRISTESCU
Larisa STĂNILĂ
- Communication and PR in crisis situations
Claudia Elena PAICU
Laurențiu Gabriel FRÂNCU