 THE USEFULNESS OF THE AUTONOMY RATIO IN THE PREDICTION OF BANKRUPTCYDaniel Brîndescu-Olariu
Management Intercultural, 2015, issue 34, 321-329 Abstract: The purpose of the current study was to test the potential of the autonomy ratio in the prediction of bankruptcy. The target population included all the active companies from the Timis County with annual sales of over 10,000 lei. The event the research was focused on is represented by the occurence of bankruptcy 2 years after the date of the financial statements of reference. The bankruptcy was defined in accordance with the Romanian law applicable over the period targeted by the study. The tests were performed over a paired-sample that included all the companies from the target population that went bankrupt during the period 2011-2012. The discrimination power of the autonomy ratio was evaluated for different cut-off values recommended by the existing literature. The research proves the utility of the autonomy ratio in the prediction of bankruptcy two years before its occurence. Keywords: Bankruptcy; Autonomy ratio; Financial statements; Accuracy; Financial analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cmj:interc:y:2015:i:34:p:321-329 Access Statistics for this article Management Intercultural is currently edited by Romanian Foundation for Business Intelligence More articles in Management Intercultural from Romanian Foundation for Business Intelligence, Editorial Department |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.