THE SITUATION OF FIRMS IN FINANCIAL DIFFICULTY IN ROMANIA - A BRIEF INTROSPECTION

Ana-Maria Bores ()
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Ana-Maria Bores: Ștefan cel Mare University Suceava, 720229, Romania

European Journal of Accounting, Finance & Business, 2023, vol. 11, issue 3, 153-163

Abstract: In an increasingly complex and dynamic international economic environment, disruptive factors can inevitably arise and negatively influence the business of companies, which can incur significant financial losses. Early identification of the causes of these and the identification of the necessary corrective measures is thus becoming a pressing need for transnational and national bodies and for company management. Thus, the aim of this paper is to analyse companies in financial difficulty in Romania, in order to identify the causes that led to this situation, as well as to identify the corrective measures that are required. In order to achieve this aim, the research methodology chosen is a quantitative and dynamic analysis over the period 2018-2022, based on data provided by the National Trade Registry Office. The results reveal that the COVID 19 pandemic has hit the national economy hard, along with the energy crisis and the military conflict in Ukraine, these factors leading to an increase in entities in financial distress or bankruptcy. The results can be useful to the state, which needs to undertake national policies to combat the effects of the crisis that has also affected Romania, to investors, who can inform themselves about their investments, and to management, which needs to take the necessary corrective measures.

Date: 2023
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