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Using financial ratios to identify Romanian distressed companies

Madalina Ecaterina Andreica (), Mugurel Ionut Andreica () and Marin Andreica
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Madalina Ecaterina Andreica: The Bucharest Academy of Economic Studies, Romania
Mugurel Ionut Andreica: Politehnica University, Bucharest, Romania

Authors registered in the RePEc Author Service: Madalina Ecaterina Popescu

Economia. Seria Management, 2009, vol. 12, issue 1 Special, 46-55

Abstract: In the context of the current financial crisis, when more companies are facing bankruptcy or insolvency, the paper aims to find methods to identify distressed firms by using financial ratios. The study will focus on identifying a group of Romanian listed companies, for which financial data for the year 2008 were available. For each company a set of 14 financial indicators was calculated and then used in a principal component analysis, followed by a cluster analysis, a logit model, and a CHAID classification tree.

Keywords: distress company; financial ratio; cluster; CHAID; logit model (search for similar items in EconPapers)
JEL-codes: C40 C50 G01 G33 (search for similar items in EconPapers)
Date: 2009
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Working Paper: Using Financial Ratios to Identify Romanian Distressed Companies (2010) Downloads
Working Paper: Using Financial Ratios to Identify Romanian Distressed Companies (2009) Downloads
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