Review article

Assessing bankruptcy risk for Romanian metallurgical companies

S.N. Borlea ; West Vasile Goldis University, Arad, Romania
M.V. Achim ; Babeş-Bolyai University, Cluj-Napoca, Romania

Abstract

In this paper it propose to evaluate the bankruptcy risk of the companies which operate within the Romanian metallurgy industry, over the period 2001-2012, highlighting the impact of financial crisis on this sector. The bankruptcy risk assessing by Altman Model gives us a pessimistic view of the Romanian metallurgical industry. A little more optimistic perspective on the risk of bankruptcy in Romanian metallurgy is provided by the Conan Holder Model according to which the best two Romanian metallurgical companies traded at BSE (ALR and ART) face a low risk of bankruptcy. According to this model the financial crisis seems to have affected the first two Romanian metallurgical companies only in 2009, then in the following years the bankruptcy risk degrease, achieving satisfactory levels.

Keywords

metallurgical companies; Romania; financial indicator; failure risk

Hrčak ID:

110303

URI

https://hrcak.srce.hr/110303

Publication date:

1.4.2014.

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