<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Insolvency represents the state of the debtor’s patrimony characterized by insufficient funds available for the payment of certain, liquid and due debts. It may occur even in case of strong companies, for example, in case of listed companies, generating loses for investors. In economic theory, a series of insolvency risk prediction models were developed, based on the method of scores, the most known and used being the Altman model. At the present moment, five companies, traded at Bucharest Stock Exchange are insolvent. The aim of this paper is to establish if the Altman model can successfully be used for Romanian traded companies, to determine the risk of insolvency.</p></abstract>

Insolvency represents the state of the debtor’s patrimony characterized by insufficient funds available for the payment of certain, liquid and due debts. It may occur even in case of strong companies, for example, in case of listed companies, generating loses for investors. In economic theory, a series of insolvency risk prediction models were developed, based on the method of scores, the most known and used being the Altman model. At the present moment, five companies, traded at Bucharest Stock Exchange are insolvent. The aim of this paper is to establish if the Altman model can successfully be used for Romanian traded companies, to determine the risk of insolvency.

Could The Insolvency Risk for Companies Traded on Bucharest Stock Exchange have been Identified? A Case Study Using the Altman Model

Land Forces Academy Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Insolvency represents the state of the debtor’s patrimony characterized by insufficient funds available for the payment of certain, liquid and due debts. It...

Could The Insolvency Risk for Companies Traded on Bucharest Stock Exchange have been Identified? A Case Study Using the Altman Model

Published Online: Feb 01, 2019

Page range: 306 - 312

DOI: https://doi.org/10.2478/raft-2018-0038

Keywords
BSE, risk of insolvency, Altman model

© 2018 Diana Elena Vasiu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Could The Insolvency Risk for Companies Traded on Bucharest Stock Exchange have been Identified? A Case Study Using the Altman Model

Published Online: Feb 01, 2019

Page range: 306 - 312

DOI: https://doi.org/10.2478/raft-2018-0038

KeywordsBSE, risk of insolvency, Altman model

© 2018 Diana Elena Vasiu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
BSE, risk of insolvency, Altman model