Using financial ratios to identify Romanian distressed companies

ANDREICA Madalina Ecaterina (), ANDREICA Mugurel Ionut () and Marin Andreica
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ANDREICA Madalina Ecaterina: The Bucharest Academy of Economic Studies, Romania
ANDREICA Mugurel Ionut: Politehnica University, Bucharest, Romania

Economia. Seria Management, 2009, vol. 12, issue 1 Special, pages 46-55

Abstract: 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.

Keywords: distress company; financial ratio; cluster; CHAID; logit model (search for similar items in EconPapers)
JEL-codes: G01 G33 C40 C50 (search for similar items in EconPapers)
Date: 2009
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Related works:
Working Paper: Using Financial Ratios to Identify Romanian Distressed Companies (2010)
Working Paper: Using Financial Ratios to Identify Romanian Distressed Companies (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:rom:econmn:v:12:y:2009:i:1special:p:46-55

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