THE BANKRUPT RISK IN FEED DISTRIBUTION BRANCH IN DOLJ DISTRICT – FDR MODEL

Ovidiu Caprariu
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Ovidiu Caprariu: University of Craiova

Management and Marketing Journal, 2010, vol. VIII, issue S1, S156-S169

Abstract: In this article, we are intending to present a score function in order to calculate the bankrupt risk for a special domain: feed distribution. All analysis models of the bankruptcy risk have at their basis a score function according to which it is determined with approximation whether the company would get bankruptcy or would have performing economic results, in a period immediately following the analysis. Having a personal analysis in feed distribution branch, I elaborated a score function for counting bankrupt risk, based on financial and non-financial studies of many companies and we called this model “Feed Distribution Risk Model” (FDR). The target was to obtain a high level of precision, so I choose the feed industry and more specific only feed distribution branch and I analyzed statistics about the evolution of the feed distribution companies in Romania and about the normal level of some financial or non-financial indicators for these companies. I have choose five feed distribution companies and I counted two international score functions and two Romanian score function with FDR function. Finally, I concluded that the three main differences between the classic models and this one are that the FDR model is for a specified branch – the feed distribution, it uses an important number of indicators and uses non-financial indicators, which explain the shareholders bonity. As directions to continue the investigations, I propose the elaboration of another models for other branches and adjust the financial information with true dates.

Keywords: bankrupt risk; score function; financial indicators; non-financial indicators (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
Date: 2010
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