A study regarding the risk of the micro-entreprises in the Dolj district

Lucian Buse, Daniel Circiumaru (), Marian Siminica and Mirela Ganea
Additional contact information
Mirela Ganea: University of Craiova

Annals of University of Craiova - Economic Sciences Series, 2008, vol. 1, issue 36, 16-25

Abstract: The study of the risk has become very important in the last years, due to the increase of the competition on the Romanian market and also due to the consolidation of the market economy mechanisms that have determined the augmentation of the number of bankruptcies in Romania. The micro-enterprises are, obviously, the most exposed at the risk of bankruptcy, fact that justifies a study of the risk that these enterprises face. In this paper, we have analyzed the risk of the micro-enterprises during the period 2004-2005, on a database that included 1401 companies. For this aim, we have used two specific instruments: a score function, for the estimation of the bankruptcy risk, and the degrees of leverage, for the assessment of the operating and financial risk. After making this study, we noticed that the micro-enterprises from the Dolj District have dealt with a risk augmentation in 2005, fact emphasized both by the decrease of the average score and by the augmentation of the weight of the bankrupt companies in the total number of analyzed enterprises. Also, the other drawn conclusion was linked with the lack of correlation between the Z score and the degrees of operating and financial leverage, due to the different foundations of these instruments in appreciating the risk dimension.

Keywords: risk; score function; degree of operating leverage; degree of financial leverage. (search for similar items in EconPapers)
JEL-codes: D00 D81 O00 O12 (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/AUCSSE/0036v1-001.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:1:y:2008:i:11:p:16-25

Access Statistics for this article

Annals of University of Craiova - Economic Sciences Series is currently edited by Sorinel Domnisoru

More articles in Annals of University of Craiova - Economic Sciences Series from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Anca Bandoi ( this e-mail address is bad, please contact ).