Misunderstanding of Corporate Insolvency and Solvency Assessment Methodology – How Did the Logic Run Away?

Vladan Pavlovic, Goranka Knezevic and Antonio Andre Cunha Callado

Economic Studies journal, 2023, issue 6, 132-144

Abstract: The paper shows that there is a need in most of the Balkan countries to change the law governing the insolvency issue by clearly defining insolvency and thereby removing the confusion surrounding it from the legislation. It is also essential to harmonize the legal provisions so that the term insolvency is used consistently throughout the legal text. The paper also shows the need to define solvency properly in textbooks and present the correct methodology to assess solvency. In this way, it can be expected that neither the term (in)solvency nor the (in)solvency indicator(s) will be incorrectly used by scholars from the Balkan region.

JEL-codes: G32 G33 K22 M41 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2023:i:6:p:132-144

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