Complex issue regarding the bankruptcy risk by using the scoring method

Caruntu Constantin and Lapadusi Mihaela Loredana ()
Additional contact information
Lapadusi Mihaela Loredana: „Constantin Brâncusi” University, Faculty of Economic Science and Affairs Administration

Ovidius University Annals, Economic Sciences Series, 2010, vol. X, issue 1, 1483-1488

Abstract: The goal of the scoring method is to provide predictive models for the assessment of the bankruptcy risk of an enterprise. Its implementation requires observing a set on enterprises from two different groups: a group of companies with financial difficulties and a group of enterprises with no financial problems. For each of the two groups is established a set of rates, and then is determined the best linear combination of rates which allows the differentiation between the two groups of companies. The scoring method refers to profitability indicators, indicators of asset structure, liquidity indicators or efficiency indicators. The condition for selecting the indicators which show the company’s performance is the independent relation between them. The existence of correlations between indicators would lead, during that function, to record the repeated influences of the same economic or financial phenomenon.

Keywords: risk; efficiency; Z score; financial results (search for similar items in EconPapers)
JEL-codes: G3 G32 G33 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/rezumatemai2010.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:ovi:oviste:v:10:y:2010:i:1:p:1483-1488

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().