IDEAS home Printed from https://ideas.repec.org/a/cmj/interc/y2015i34p321-329.html
   My bibliography  Save this article

The Usefulness Of The Autonomy Ratio In The Prediction Of Bankruptcy

Author

Listed:
  • Daniel BRÎNDESCU-OLARIU

    (Universitatea de Vest – Timișoara)

Abstract

The purpose of the current study was to test the potential of the autonomy ratio in the prediction of bankruptcy. The target population included all the active companies from the Timis County with annual sales of over 10,000 lei. The event the research was focused on is represented by the occurence of bankruptcy 2 years after the date of the financial statements of reference. The bankruptcy was defined in accordance with the Romanian law applicable over the period targeted by the study. The tests were performed over a paired-sample that included all the companies from the target population that went bankrupt during the period 2011-2012. The discrimination power of the autonomy ratio was evaluated for different cut-off values recommended by the existing literature. The research proves the utility of the autonomy ratio in the prediction of bankruptcy two years before its occurence.

Suggested Citation

  • Daniel BRÎNDESCU-OLARIU, 2015. "The Usefulness Of The Autonomy Ratio In The Prediction Of Bankruptcy," Management Intercultural, Romanian Foundation for Business Intelligence, Editorial Department, issue 34, pages 321-329, November.
    • Handle: RePEc:cmj:interc:y:2015:i:34:p:321-329
    as

    Download full text from publisher

    File URL: http://seaopenresearch.eu/Journals/articles/MI_34_3.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bankruptcy; Autonomy ratio; Financial statements; Accuracy; Financial analysis;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cmj:interc:y:2015:i:34:p:321-329. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serghie Dan (email available below). General contact details of provider: https://seaopenresearch.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.