MODELS FOR THE ASSESSMENT OF THE ENTREPRISE BANKRUPTY RISK IN CRISIS SITUATIONS

Silvia Melania Petrescu () and Camelia Catalina Mihalciuc ()
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Silvia Melania Petrescu: „Al. I. Cuza” University of Iasi, Romania
Camelia Catalina Mihalciuc: „Stefan cel Mare” University of Suceava, Romania

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2009, vol. 9, issue 2(10), 163-172

Abstract: The complex nature of the aspects involved by bankruptcy risk also explains the diversity of the diagnosis and analysis models, of which we mention: the liquidity- chargeability analysis, the functional analysis, the rate analysis, the financial flow analysis, etc, therefore, bankruptcy risk analysis can be developed in a static manner, using the analysis of the balance sheet financial balances, or in a dynamic manner, using the analysis of the flows depicted in the financing chart. Based on specialty literature, this paper will outline the national and international contributions in the field of discriminatory analysis and bankruptcy prediction, also known as the so-called score functions. Several researchers and financial organisations have been concerned with developing a bankruptcy risk prediction method, starting from a small group of rates, closely linked to the health or vulnerability of the enterprise. The procedure used is the statistic technique of discriminatory analysis of the financial features (calculated using rates) of the normal functioning enterprises and of those experiencing difficulties in their economic and financial management. Most bankruptcy risk analysis methods are based on the score function which helps determine if an enterprise will go bankrupt or will have irrelevant economic results during a period immediately following the analysis (two years max). Thus, this paper introduces the main scoring methods for estimating bankruptcy risk, also underlining the main analysis schools, the Anglo-Saxon and the continental school respectively, and also outlining the national development in the field, the contributions of the Romanian school of economic-financial analysis.

Keywords: bankruptcy risk; discriminatory analysis and bankruptcy prediction; score functions; solvability; models for the assessment of the enterprise bankruptcy (search for similar items in EconPapers)
Date: 2009
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