Failure prediction from the investors´ view by using financial ratios: lesson from Romania

Show simple item record
dc.contributor.authorAchim, Monica Violeta
dc.contributor.authorBorlea, Sorin Nicolae
dc.contributor.authorGăban, Lucian Vasile
dc.date.accessioned2016-12-15T06:23:52Z
dc.date.available2016-12-15T06:23:52Z
dc.date.issued2016
dc.description.abstract-translatedThe purpose of our study is to identify which fi nancial indicators have a signi fi cant impact on the probability of Romanian companies’ bankruptcy risk from the investors’ point of view by studying the impact on the probability of shares delisting from the stock exchange. The research is conducted on a sample of 16 failed and 21 non-failed non- fi nancial companies listed on the Bucharest Stock Exchange between 2002 and 2012. The Logit analysis is used for identifying the variables that are signi fi cant and have predictive power on distress likelihood. By using 12 main fi nancial ratios, we estimate three alternative Logit models for determining their signs, signi fi cance, predictive power, ef fi ciency of fi t tests. The fi rst model provides the highest explanatory power. Three variables such as Flexibility ratio (FLEX), Assets turnover (ASTU) and Current assets turnover (CASTU) are found to be signi fi cant determinants for stock exchange delisting. These three variables provide 52.59% of correct prediction of bankruptcy risk. The percentage for correctly classi fi ed observations for the fi tted Logit model is of 83.33%. Moreover, this research attempts to reveal the changes that may appear among bankruptcy predictors given that the bankruptcy risk model is developed from the investors’ point of view and not from that of a simple decision-making person. For a stock market investor, bankruptcy already starts at the stage of delisting the company because the investment was strongly compromised, whether or it continues its activity or not. Orientation towards investors when predicting bankruptcy risk is the main element of originality that our research adds to the scienti fi c achievements in bankruptcy, until this moment.en
dc.format17 s.cs
dc.format.mimetypeapplication/pdf
dc.identifier.citationE+M. Ekonomie a Management = Economics and Management. 2016, č. 4, s. 117-133.cs
dc.identifier.doi10.15240/tul/001/2016-4-009
dc.identifier.doidx.doi.org/10.15240/tul/001/2016-4-009
dc.identifier.issn1212-3609 (Print)
dc.identifier.issn2336-5604 (Online)
dc.identifier.urihttp://hdl.handle.net/11025/22058
dc.language.isoenen
dc.publisherTechnická univerzita v Libercics
dc.relation.ispartofseriesE+M. Ekonomie a Management = Economics and Managementcs
dc.rights© Technická univerzita v Libercics
dc.rightsCC BY-NC 4.0cs
dc.rights.accessopenAccessen
dc.subjectvyřazenícs
dc.subjectselhánícs
dc.subjectfinanční ukazatelecs
dc.subjectlogitový modelcs
dc.subject.translateddelistingen
dc.subject.translatedfailureen
dc.subject.translatedfinancial ratiosen
dc.subject.translatedlogit modelen
dc.titleFailure prediction from the investors´ view by using financial ratios: lesson from Romaniaen
dc.typečlánekcs
dc.typearticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen

Files

Original bundle
Showing 1 - 1 out of 1 results
No Thumbnail Available
Name:
Achim.pdf
Size:
1.2 MB
Format:
Adobe Portable Document Format
Description:
Plný text
Download
License bundle
Showing 1 - 1 out of 1 results
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Číslo 4 (2016)
Číslo 4 (2016)