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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
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Dirk Schoenmaker & Willem Schramade, 2023. "Corporate Finance for Long-Term Value," Springer Texts in Business and Economics, Springer, number 978-3-031-35009-2, January.
    4. Yu, Haiyan & Su, Tao, 2024. "ESG performance and corporate solvency," Finance Research Letters, Elsevier, vol. 59(C).
    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.
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