Theoretical and Applied Economics
No. 5 / 2013 (582)
Early warning models of financial distress. Case study of the Romanian firms listed on RASDAQ
The Bucharest University of Economic Studies
Abstract. In this paper we design an early warning model for Romanian distressed firms. The logit model was built based on financial ratios of 66 Romanian firms listed on RASDAQ that were facing financial difficulties in 2011. In addition, we identified the main principal components obtained with minimum loss of information after applying the principal component analysis and proposed a new estimation of the logit model by replacing the initial set of input data matrix with the main principal components of the financial observations. The results indicated an increase with 12 percentage points in the performance of the one year ahead prediction of financial distress of the new warning model.
Contents
Early warning models of financial distress. Case study of the Romanian firms listed on RASDAQ
Innovation: a path to competitiveness and economic growth. The case of CEE countries
Monetary autonomy under different exchange rate regimes in the long-run: the case of seven new EU countries
The future of marketing: an appropriate response to the environment changes
Education for sustainability – a prerequisite for post-crisis economic competitiveness with possible inference for Romania
A regional model for labour demand in Romania
Robustness of public choice models of voting behavior
The evolution of sovereign wealth funds and their influence in the global economy. The case of China
How does the labour’s market dynamic influence the level of the public pension in Romania in the actual economic context?
The customers borrowing behavior during the financial crisis
Foreign direct investment and economic growth in Romania
The image of the economic institutions in the context of global economy