ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
Our journal is currently indexed in the following databases:
|
|
Article from Volume 11, Number 3, Year 2023THE SITUATION OF FIRMS IN FINANCIAL DIFFICULTY IN ROMANIA - A BRIEF INTROSPECTION | Download | Author(s): Ana - Maria Bores | DOI: 10.4316/EJAFB.2023.11318 | | 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. | Keywords: Financial Difficulty; Bankruptcy; Economic Crisis; Dynamic Analysis. | References: 1. Back, P. (2005). Explaining Financial Difficulties Based On Previous Payment Behavior, Management Background Variables And Financial Ratios. European Accounting Review, 14(4), 839-868.
2. Biz. 2023. Câte Companii De Impact Au Intrat în Insolven?? în 2022. Retrieved September 20, 2023 From: Https://www.revistabiz.ro/cate-companii-de-impact-au-intrat-in-insolventa-in-2022/.
3. Coface Romania. (2022). Crestere De 10% A Numarului De Insolvente In 2022, Dupa +10% In 2021. Retrieved September 20, 2023 From: Https://www.agendaconstructiilor.ro/files/afaceri-juridic-finante-impozite/coface-crestere-de-10-a-numarului-de-insolvente-in-2022-dupa-10-in-2021.html.
4. De Oliveira F., N. (2021). Bankruptcy Policy—An Instrument For The Economic Recovery From The COVID Crises. Journal Of Business And Economics, 615.
5. Hlaciuc, E., Socoliuc, M., & Mate?, D. (2008). Bankrupty Risk Analyzis Through Financial Management. Buletin ?tiin?ific, Anul XIII Nr, 2(26), 2008.
6. Kalash, I. (2023). The Financial Leverage–financial Performance Relationship In The Emerging Market Of Turkey: The Role Of Financial Distress Risk And Currency Crisis. EuroMed Journal Of Business, 18(1), 1-20. Https://doi.org/10.1108/EMJB-04-2021-0056.
7. Lebedinschi, A. (2016). Corela?ia Definitorie Dintre Starea De încetare A Pl??ilor, Incapacitatea De Plat?, Insolven??, Insolvabilitate, Faliment, Bancrut?. Legea ?i Via?a, 296(8), 27-34.
8. Lege Nr. 85 Din 25 Iunie 2014 Privind Procedurile De Prevenire A Insolven?ei ?i De Insolven??, Retrieved September 20, 2023 From: Https://legislatie.just.ro/Public/DetaliiDocumentAfis/159286.
9. Li, X., Wang, J., & Yang, C. (2023). Risk Prediction In Financial Management Of Listed Companies Based On Optimized BP Neural Network Under Digital Economy. Neural Computing And Applications, 35(3), 2045-2058. Https://doi.org/10.1007/s00521-022-07377-0.
10. Li, Z., Farmanesh, P., Kirikkaleli, D., & Itani, R. (2022). A Comparative Analysis Of COVID-19 And Global Financial Crises: Evidence From US Economy. Economic Research-Ekonomska Istraživanja, 35(1), 2427-2441. Https://doi.org/10.1080/1331677X.2021.1952640.
11. Lin, S. M., Ansell, J., & Andreeva, G. (2012). Predicting Default Of A Small Business Using Different Definitions Of Financial Distress. Journal Of The Operational Research Society, 63(4), 539-548.
12. ONRC. 2023. Oficiul Na?ional Al Registrului Comer?ului. Retrieved September 20, 2023 From: Https://www.onrc.ro/index.php/ro/statistici?id=252.
13. Socoliuc, M. I. (2020). Considerations Concerning The Implications Of The COVID 19 Pandemic On The Role Of The Corporate Governance In The Ensurance Of The Continuity Of The Activity. Annales Universitatis Apulensis: Series Oeconomica, 22(2), 126-138.
14. Stan, A. (2023). Comer?ul R?mâne în Topul Domeniilor Afectate De Insolven?e ?i în 2022. Retrieved September 20, 2023 From: Https://revistaprogresiv.ro/stiri/comertul-ramane-topul-domeniilor-afectate-de-insolvente-si-2022.
15. Sun, J., Li, H., Huang, Q. H., & He, K. Y. (2014). Predicting Financial Distress And Corporate Failure: A Review From The State-of-the-art Definitions, Modeling, Sampling, And Featuring Approaches. Knowledge-Based Systems, 57, 41-56.
16. Sun, J., Makosa, L., Yang, J., Yin, F., & Sitsha, L. (2023). Does Corporate Tax Planning Mitigate Financial Constraints? Evidence From China. International Journal Of Finance & Economics, 28(1), 510-527. Https://doi.org/10.1002/ijfe.2433.
17. ??ndareanu, N., (2012). Insolven?a în Reglementarea Legii 85/2006, Comentarii, Doctrin?. Jurispruden??. Universul Juridic. Bucure?ti, Roamnia.
18. Vale, M. V., & Zenzerovi?, R. (2016). Diagnosing Companies In Financial Difficulty Based On The Auditor’s Report. Croatian Operational Research Review, 147-158.
19. Zhou, F., Fu, L., Li, Z., & Xu, J. (2022). The Recurrence Of Financial Distress: A Survival Analysis. International Journal Of Forecasting, 38(3), 1100-1115. Https://doi.org/10.1016/j.ijforecast.2021.12.005.
20. Ziar MM. (2019). Retrieved September 20, 2023 From: Https://ziarmm.ro/onrc-numarul-insolventelor-a-scazut-cu-877-in-2018-suspendarile-si-dizolvarile-au-crescut-cu-1012-respectiv-cu-1013/.
|  
| Back to journal ... |
|
|
|
|
|
|