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Diagnosis Of Bankruptcy Risk In The Furniture Industry Using The Canon-Holder And Altman Models

Author

Listed:
  • Radu MĂRGINEAN

    („1 Decembrie 1918” University of Alba-Iulia)

  • Delia Corina MIHALȚAN

    („Valahia” University of Târgoviște)

Abstract

The financial and economic crisis that started in 2008 caused negative effects felt by the entire European economy, affecting more or less all of the world's economies. This paper aims to study the diagnosis of bankruptcy risk using the Canon-Holder and Altman methods, from a theoretical point of view and with practical examples on a company in the furniture industry in Romania. In a context of economic uncertainty, the relevance of such an analysis designed to quantify the risk of bankruptcy for companies is the default. The financial data used is real and descriptively analyzed, we analyzed a period of eight years, between 2006-2013. As a method of analysis complementary to the financial analysis of the background of companies, the diagnosis of bankruptcy risk using the score method, using the specific models known in the specialty literature, brings relevant information concerning the problem of risk assessment. We concluded in the case study the opportunity of such an analysis for the furniture industry through the results obtained in the case studies, the method is a useful tool, especially for the practitioners in the sector.

Suggested Citation

  • Radu MĂRGINEAN & Delia Corina MIHALȚAN, 2015. "Diagnosis Of Bankruptcy Risk In The Furniture Industry Using The Canon-Holder And Altman Models," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 8, pages 83-91, June.
    • Handle: RePEc:cmj:seapas:y:2015:i:8:p:83-91
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    More about this item

    Keywords

    The Alman Pattern; The Conan-Holder Pattern; Performance; Bankruptcy risk; The furniture industry;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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