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Assessment of the Insolvency Risk in Companies Listed on the Bucharest Stock Exchange

Author

Listed:
  • Balteș Nicolae

    (Faculty of Economics, „Lucian Blaga” University of Sibiu, Romania)

  • Pavel Ruxandra Maria

    (Faculty of Economics, „Lucian Blaga” University of Sibiu, Romania)

Abstract

The present study presents, from the theoretical and pragmatic point of view, 6 of the established score models regarding the assessment of the insolvency risk, belonging to the Anglo-Saxon, Continental and Romanian schools. The research sample is made up of 26 companies belonging to the hotel industry and restaurants, listed on the Bucharest Stock Exchange. The research was carried out over a period of 11 years (2007-2017). Following the application of the score models, it was found that during the period covered by the research, a number of 14 companies had a relatively high insolvency risk and 12 of them had a relatively low insolvency risk.

Suggested Citation

  • Balteș Nicolae & Pavel Ruxandra Maria, 2019. "Assessment of the Insolvency Risk in Companies Listed on the Bucharest Stock Exchange," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 29(4), pages 58-71, December.
    • Handle: RePEc:vrs:suvges:v:29:y:2019:i:4:p:58-71:n:4
    DOI: 10.2478/sues-2019-0018
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    References listed on IDEAS

    as
    1. Mihai Bogdan PETRISOR & Dan LUPU, 2013. "The Forecast Of Bankruptcy Risk Using Altman Model," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 13(2(18)), pages 155-162, June.
    2. Balcaen, Sofie & Ooghe, Hubert, 2006. "35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems," The British Accounting Review, Elsevier, vol. 38(1), pages 63-93.
    3. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    4. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    5. Silvia Melania PETRESCU & Camelia Catalina MIHALCIUC, 2009. "Models For The Assessment Of The Entreprise Bankrupty Risk In Crisis Situations," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 9(2(10)), pages 163-172, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    insolvency risk; bankruptcy; financial difficulty; score models; financial performance;
    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
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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