Finanţe: Provocările viitorului (Nov 2016)
The Z - Score Model for Predicting Periods o f Financial I nstability. Z - Score Estimation for the Banks Listed o n Bucharest Stock Exchange
Abstract
Financial stability is an ongoing concern for practitioners, policy makers, but also for banks, especially in terms of quantifying it. Therefore, this paper consists of a theoretical approach in conjunction with an applicative study based on an alternative measure of financial stability, namely the Z-score model proposed by Altman. The Z-score model, although originally designed for manufacturing companies, has been repeatedly adjusted, depending on the activity of the company which applies the model and the development of the operating market. Thus, from a sample of banks listed on the Bucharest Stock Exchange, we determined the Z-score function for the period 2012-2014, outlining the evolution of their financial stability according to the classification results.
