IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2025v1p253-259.html
   My bibliography  Save this article

Empirical Study On The Solvency Of Small And Mediumsized Enterprises In Romania

Author

Listed:
  • CHERMEZAN LEONTINA

    (BABES-BOLYAI UNIVERSITY CLUJ-NAPOCA DEPARTMENT OF ECONOMICS AND BUSINESS ADMINISTRATION, ROMANIA)

  • BATRANCEA LARISSA

    (BABES-BOLYAI UNIVERSITY CLUJ-NAPOCA DEPARTMENT OF BUSINESS, ROMANIA)

Abstract

The study examines the relationship between solvency and performance indicators dealing with assets, sales, owner’s equity and general profitability. We estimated models with panel generalized method of moments (GMM) across a decade using financial data from a sample of 121 small and medium-sized companies in Romania. Empirical results showed that the largest impact on solvency was yielded by performance indicators such as return on assets, return on sales and general profitability ratio.

Suggested Citation

  • Chermezan Leontina & Batrancea Larissa, 2025. "Empirical Study On The Solvency Of Small And Mediumsized Enterprises In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 253-259, February.
    • Handle: RePEc:cbu:jrnlec:y:2025:v:1:p:253-259
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2025-01/29_Chermezan.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dirk Schoenmaker & Willem Schramade, 2023. "Corporate Finance for Long-Term Value," Springer Texts in Business and Economics, Springer, number 978-3-031-35009-2, July.
    2. Yu, Haiyan & Su, Tao, 2024. "ESG performance and corporate solvency," Finance Research Letters, Elsevier, vol. 59(C).
    3. Larissa Batrancea, 2021. "The Nexus between Financial Performance and Equilibrium: Empirical Evidence on Publicly Traded Companies from the Global Financial Crisis Up to the COVID-19 Pandemic," JRFM, MDPI, vol. 14(5), pages 1-12, May.
    4. Lalinsky, Tibor & Pál, Rozália, 2022. "Distribution of COVID-19 government support and its consequences for firm liquidity and solvency," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 305-335.
    5. Larissa Batrancea, 2021. "The Influence of Liquidity and Solvency on Performance within the Healthcare Industry: Evidence from Publicly Listed Companies," Mathematics, MDPI, vol. 9(18), pages 1-15, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weng Hoe Lam & Weng Siew Lam & Kah Fai Liew & Pei Fun Lee, 2023. "Decision Analysis on the Financial Performance of Companies Using Integrated Entropy-Fuzzy TOPSIS Model," Mathematics, MDPI, vol. 11(2), pages 1-18, January.
    2. Qin, Meng & Su, Ai-Hsuan & Li, Ruifeng & Su, Chi-Wei, 2024. "Speculation, climate or pandemic: Who drives the Chinese herbal medicine bubbles?," China Economic Review, Elsevier, vol. 87(C).
    3. Lalinsky, Tibor & Meriküll, Jaanika & Lopez-Garcia, Paloma, 2024. "Productivity-enhancing reallocation during the Covid-19 pandemic," Working Paper Series 2947, European Central Bank.
    4. Bighelli, Tommaso & Lalinsky, Tibor & Vanhala, Juuso, 2023. "Cross-country evidence on the allocation of COVID-19 government subsidies and consequences for productivity," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    5. Peter Brusov & Tatiana Filatova & Natali Orekhova, 2023. "Influence of Method and Frequency of Profit Tax Payments on Company Financial Indicators," Springer Books, in: The Brusov–Filatova–Orekhova Theory of Capital Structure, chapter 0, pages 241-264, Springer.
    6. Jingjing Liu & Jing Wang & Tianlin Zhai & Zehui Li, 2022. "The Response of Ecologically Functional Land to Changes in Urban Economic Growth and Transportation Construction in China," IJERPH, MDPI, vol. 19(21), pages 1-17, November.
    7. Samuka Mohanty & Rajashree Dash, 2023. "A New Dual Normalization for Enhancing the Bitcoin Pricing Capability of an Optimized Low Complexity Neural Net with TOPSIS Evaluation," Mathematics, MDPI, vol. 11(5), pages 1-28, February.
    8. Lu, Mingyue & Xi, Yiqin & Sun, Yiqun & Lin, Zexin & Zhang, Haoyan & Luo, Shiyue & Afthanorhan, Asyraf & Hao, Yu, 2025. "How does carbon awareness impact corporate sustainable development? Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 215(C).
    9. Wellalage, Nirosha & Reddy, Krishna & Wallace, Damien, 2023. "Environmental performance and the role of government support: Evidence from the recent COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 58(PA).
    10. Peter Brusov & Tatiana Filatova & Natali Orekhova, 2023. "The Generalization of the Brusov–Filatova–Orekhova Theory for the Case of Payments of Tax on Profit with Arbitrary Frequency," Springer Books, in: The Brusov–Filatova–Orekhova Theory of Capital Structure, chapter 0, pages 217-239, Springer.
    11. Irena Jindrichovska & Erginbay Uğurlu, 2024. "Effect of COVID-19 on the mutual trade between Germany and the Visegrad Four," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    12. Andre Amaral & Taysir E. Dyhoum & Hussein A. Abdou & Hassan M. Aljohani, 2022. "Modeling for the Relationship between Monetary Policy and GDP in the USA Using Statistical Methods," Mathematics, MDPI, vol. 10(21), pages 1-20, November.
    13. Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Maria Kovacova, 2023. "Research on Corporate Indebtedness Determinants: A Case Study of Visegrad Group Countries," Mathematics, MDPI, vol. 11(2), pages 1-30, January.
    14. Gao, Chengyin & Zhang, Shujun, 2025. "ESG performance and corporate financialization: A dual perspective of risk management and value creation," Finance Research Letters, Elsevier, vol. 71(C).
    15. Mehmet Ali Balcı & Larissa M. Batrancea & Ömer Akgüller & Lucian Gaban & Mircea-Iosif Rus & Horia Tulai, 2022. "Fractality of Borsa Istanbul during the COVID-19 Pandemic," Mathematics, MDPI, vol. 10(14), pages 1-33, July.
    16. José Manuel Maside-Sanfiz & María-Celia López-Penabad & Ana Iglesias-Casal & Juan Torrelles Manent, 2024. "Determinants of the profitability of Sheltered Workshops: efficiency and effects of the COVID-19 crisis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    17. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.
    18. Zaroug Bilal & Abdullah AlGhazali & Ahmed Samour, 2024. "GCC banks liquidity and financial performance: does the type of financial system matter?," Future Business Journal, Springer, vol. 10(1), pages 1-15, December.
    19. Tu, Zhengge & Cao, Yu & Goh, Mark & Wang, Yujia, 2024. "Executive green cognition and corporate ESG performance," Finance Research Letters, Elsevier, vol. 69(PB).
    20. Peter Brusov & Tatiana Filatova & Natali Orekhova, 2023. "Benefits of Advance Payments of Tax on Profit: Consideration Within Brusov–Filatova–Orekhova (BFO) Theory," Springer Books, in: The Brusov–Filatova–Orekhova Theory of Capital Structure, chapter 0, pages 205-216, Springer.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:cbu:jrnlec:y:2025:v:1:p:253-259. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ecobici Nicolae The email address of this maintainer does not seem to be valid anymore. Please ask Ecobici Nicolae to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    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.