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Labor Productivity As A Factor For Bankruptcy Prediction

Author

Listed:
  • Daniel BRÎNDESCU – OLARIU

    (West University of Timisoara)

Abstract

The current study evaluates the potential of the labor productivity in predicting corporate bankruptcy. The population subjected to the analysis included all companies form Timis County with yearly sales of over 2200 Euros. The interest for the labor productivity was based on the recommendations of the scientific literature, as well as on the availability of information concerning its values to all stakeholders. The event on which the research was focused was represented by the manifestation of bankruptcy 2 years after the date of the financial statements of reference. All tests were performed over a paired sample of 1424 companies. The methodology employed in evaluating the potential of the labor productivity was based on the general accuracy ensured by the ratio (63.2%) and the Area Under the ROC Curve (0.665). The results confirm the practical utility of the labor productivity in the prediction of bankruptcy.

Suggested Citation

  • Daniel BRÎNDESCU – OLARIU, 2014. "Labor Productivity As A Factor For Bankruptcy Prediction," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 6, pages 33-36, December.
    • Handle: RePEc:cmj:seapas:y:2014:i:6:p:33-36
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    References listed on IDEAS

    as
    1. Daniel BRÎNDESCU – OLARIU, 2014. "The Potential Of The Equity Working Capital In The Prediction Of Bankruptcy," Management Intercultural, Romanian Foundation for Business Intelligence, Editorial Department, issue 31, pages 25-32, November.
    2. Daniel BRÎNDESCU – OLARIU, 2014. "The Correlation Between The Autonomy Ratio And The Return On Equity," Management Intercultural, Romanian Foundation for Business Intelligence, Editorial Department, issue 31, pages 407-414, November.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Daniel BRINDESCU-OLARIU, 2015. "The Potential Of The Debt Ratio In The Prediction Of Corporate Bankruptcy," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 37-45, September.
    2. Daniel BRÎNDESCU-OLARIU, 2016. "Bankruptcy prediction based on the debt ratio," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(607), S), pages 145-156, Summer.
    3. Daniel Brîndescu Olariu, 2016. "Bankruptcy Prediction Based on the Autonomy Ratio," EuroEconomica, Danubius University of Galati, issue 2(35), pages 78-92, November.

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    1. Daniel BRINDESCU-OLARIU, 2015. "The Potential Of The Debt Ratio In The Prediction Of Corporate Bankruptcy," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 37-45, September.
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    5. Daniel Brîndescu Olariu, 2016. "Bankruptcy Prediction Based on the Autonomy Ratio," EuroEconomica, Danubius University of Galati, issue 2(35), pages 78-92, November.
    6. Daniel BRÎNDESCU-OLARIU, 2016. "Bankruptcy prediction based on the debt ratio," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(607), S), pages 145-156, Summer.

    More about this item

    Keywords

    Corporate finance; Risk; Failure; Financial ratio; Financial analysis; Classification accuracy;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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