Using Financial Ratios to Identify Romanian Distressed Companies
In the context of the current financial crisis, when more companies are facing bankruptcy or insolvency, the paper aims to find methods to identify distressed firms by using financial ratios. The study will focus on identifying a group of Romanian listed companies, for which financial data for the year 2008 were available. For each company a set of 14 financial indicators was calculated and then used in a principal component analysis, followed by a cluster analysis, a logit model, and a CHAID classification tree.
|Date of creation:||15 Jun 2009|
|Date of revision:|
|Publication status:||Published, Economy Journal - Series Management (ISSN: 1454-0320), 2009, 12, special issue no. 1, 46-55|
|Note:||View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00474278/en/|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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- Shumway, Tyler, 2001. "Forecasting Bankruptcy More Accurately: A Simple Hazard Model," The Journal of Business, University of Chicago Press, vol. 74(1), pages 101-24, January.
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- Eisenbeis, Robert A, 1977. "Pitfalls in the Application of Discriminant Analysis in Business, Finance, and Economics," Journal of Finance, American Finance Association, vol. 32(3), pages 875-900, June.
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