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Early Warning Indicators - Evolution For The Medical Companies Registered At Bse

Author

Listed:
  • Laurențiu Droj

    (University of Oradea, Faculty of Economic Sciences, Department of Finance and Accounting, Oradea, Romania)

  • Ioan Gheorghe Tara

    (University of Oradea, Faculty of Economic Sciences, Department of Finance and Accounting, Oradea, Romania)

Abstract

Setting up and analysis of financial early warning indicators for public or private companies is a much-debated scientific and practical subject. Theories and experiments, which led to the establishment of a common set of early warning indicators, are quite old, starting from the 1950's. These indicators came aggressively back into academic study and practice after the current world crisis. In the last years, several methods were tested by academic researchers and also by Banks and Audit agencies. The results seem to be different from one case study to another and seems to be linked with the financial data at the disposal of the researchers. The financial results of the medical companies are influenced by a large number of factors both internal and external: starting from state regulation, fierce international competition, innovation, so on. In this context, the current paper is proposing a brief analysis in the evolution of the financial early warning indicators for several medical and pharmaceutical companies registered in the Bucharest Stock Exchange. These elements are important since the selected companies are having a powerful national and regional influence over the economy and in the same time, these companies constitute primary contributors to Romania's GDP.

Suggested Citation

  • Laurențiu Droj & Ioan Gheorghe Tara, 2018. "Early Warning Indicators - Evolution For The Medical Companies Registered At Bse," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 102-108, December.
    • Handle: RePEc:ora:journl:v:1:y:2018:i:2:p:102-108
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    File URL: http://anale.steconomiceuoradea.ro/volume/2018/n2/10.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Laurentiu DROJ & Gabriela DROJ, 2021. "Considerations Regarding The Impact Of The Covid-19 Pandemics Over The Financial Performance At The Level Of The Tourism Companies Operating In Central And Eastern Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 291-298, December.
    2. Laurentiu DROJ & Goran KARANOVIC & Ioan Gheorghe TARA, 2021. "The Impact Of The Covid-19 Pandemics Over The Financial Performance At The Level Of The Main Pharmaceutical Operating In Central And Eastern Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 283-290, December.

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    More about this item

    Keywords

    bankruptcy; solvency; efficiency; financial early warning indicators; ROE; ROA; corporate finance.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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