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A Conceptual Model and Hypothesis of Firm Bankruptcy: A Romanian Case Study

Author

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  • Sorin I Blaga

    (independent researcher, Sydney, Australia)

Abstract

This paper employs a unique approach in studying firm bankruptcy and presents a conceptual framework that identifies several variables that may predict a firm’s bankruptcy. Past research has identified entrepreneurs’ personality and behaviour (self- efficacy, locus of control and risk-taking), business management knowledge, past entrepreneurial experience, firm undercapitalization, financial literacy and entrepreneurial education, existing entrepreneurial culture, and institutional support as key factors. To differentiate Romanian entrepreneurs from others, this study proposes nine hypotheses for testing. Quantitative methodology is chosen to best serve this study’s objective of making bankrupt entrepreneurs heard and to bring in economic and legal changes that will decrease bankruptcy in Romania.

Suggested Citation

  • Sorin I Blaga, 2022. "A Conceptual Model and Hypothesis of Firm Bankruptcy: A Romanian Case Study," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(1), pages 211-226, March.
    • Handle: RePEc:rom:rmcimn:v:23:y:2022:i:1:p:211-226
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    References listed on IDEAS

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    More about this item

    Keywords

    entrepreneurs’ personality; business knowledge; entrepreneurial culture; institutional support;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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