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The Bankrupt Risk In Feed Distribution Branch In Dolj District – Fdr Model

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  • Ovidiu CAPRARIU

    (University of Craiova)

Abstract

In this article, we are intending to present a score function in order to calculate the bankrupt risk for a special domain: feed distribution. All analysis models of the bankruptcy risk have at their basis a score function according to which it is determined with approximation whether the company would get bankruptcy or would have performing economic results, in a period immediately following the analysis. Having a personal analysis in feed distribution branch, I elaborated a score function for counting bankrupt risk, based on financial and non-financial studies of many companies and we called this model “Feed Distribution Risk Model” (FDR). The target was to obtain a high level of precision, so I choose the feed industry and more specific only feed distribution branch and I analyzed statistics about the evolution of the feed distribution companies in Romania and about the normal level of some financial or non-financial indicators for these companies. I have choose five feed distribution companies and I counted two international score functions and two Romanian score function with FDR function. Finally, I concluded that the three main differences between the classic models and this one are that the FDR model is for a specified branch – the feed distribution, it uses an important number of indicators and uses non-financial indicators, which explain the shareholders bonity. As directions to continue the investigations, I propose the elaboration of another models for other branches and adjust the financial information with true dates.

Suggested Citation

  • Ovidiu CAPRARIU, 2010. "The Bankrupt Risk In Feed Distribution Branch In Dolj District – Fdr Model," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(S1), pages 156-169, June.
    • Handle: RePEc:aio:manmar:v:viii:y:2010:i:s1:p:s156-s169
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    References listed on IDEAS

    as
    1. Balcaen, Sofie & Ooghe, Hubert, 2006. "35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems," The British Accounting Review, Elsevier, vol. 38(1), pages 63-93.
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    More about this item

    Keywords

    bankrupt risk; score function; financial indicators; non-financial indicators;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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