A MODEL FOR EVALUATING THE BANKRUPTCY RISK OF THE ROMANIAN COMPANIES

Daniel Circiumaru ()

Revista Tinerilor Economisti (The Young Economists Journal), 2010, vol. 1, issue 14, 35-40

Abstract: The paper presents a score function elaborated in order to evaluate the bankruptcy risk of the Romanian industrial companies. For this purpose, I have used a 152 industrial companies sample, listed on Rasdaq, divided into 83 non-bankrupt companies and 69 bankrupt. The data comprised a 4 year retrospective period, between 1999 and 2002. The score function, elaborated using the discriminant analysis, has six ratios and has accuracy in predicting the failure of 89.29%, which is considered to be quite high, very closed to the similar models from the specialized literature.

Keywords: score function; bankruptcy risk; financial ratios; discriminant analysis (search for similar items in EconPapers)
JEL-codes: G34 G39 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2010:i:14:p:35-40

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