IDEAS home Printed from https://ideas.repec.org/a/ddj/fseeai/y2013i2p59-66.html
   My bibliography  Save this article

Models to Assess the Bankruptcy Risk

Author

Listed:
  • Simona Valeria TOMA

    (Dunarea de Jos University of Galati, Romania)

  • Ioana Veronica ALEXA

    (Dunarea de Jos University of Galati, Romania)

  • Daniela Ancuţa SARPE

    (Dunarea de Jos University of Galati, Romania)

Abstract

Closely related to financial risk assessment, one of the main concerns of the organizations should be the evaluation of bankruptcy risk, in this period of slow economic growth. Organization bankruptcies have increased in recent years worldwide. The aim of this paper is to demonstrate that the methods and models for forecasting bankruptcy of organizations, for the bankruptcy risk assessment are seeing for the health financing of an entity in financial accounting diagnosis and that the organizations requires assessment of risks accompanying the work, in which some signals fragility (vulnerable health) this and other projected bankruptcy (insolvability) threatens its survival (continuity). The bankruptcy risk assessment is important for profit-seeking investors because they must know how to value a company in or near bankruptcy is an important skill, but to detect any signs of looming bankruptcy is necessary to calculate and to analyse all kinds of financial rations: working capital, profitability, debt levels and liquidity.

Suggested Citation

  • Simona Valeria TOMA & Ioana Veronica ALEXA & Daniela Ancuţa SARPE, 2013. "Models to Assess the Bankruptcy Risk," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 59-66.
    • Handle: RePEc:ddj:fseeai:y:2013:i:2:p:59-66
    as

    Download full text from publisher

    File URL: http://www.eia.feaa.ugal.ro/images/eia/2013_2/TomaAlexaSarpe.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bankruptcy risk; Risk;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

    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:ddj:fseeai:y:2013:i:2:p:59-66. 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: Gianina Mihai (email available below). General contact details of provider: https://edirc.repec.org/data/fegalro.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.