ANALYSIS MODELS OF THE BANKRUPTCY RISK IN ROMANIA’S ENERGY SECTOR

Abstract

The risk, as a concept found in the economic sphere of business represents an analysis area often approached by researchers from the finance and accounting field. Although it is often seen, along with cost-effectiveness and value, as a fundamental element of finance (Stancu, I., 2007), the risk has often facets that make it useful also in analyzing other sides of the economic sphere of business, such as financial position and economic performance of it. From these meanings, we believe that the most suitable for this purpose is the one through which it is analyzed the ability of an entity to avoid bankruptcy. The present study has as main objectives the presentation of bankruptcy risk of an entity from a theoretical point of view and the analysis (from an empirical and comparative point of view) through the scoring method of the implementation of various models for analyzing the risk of bankruptcy (Altman, Conan-holder, Taffler, Robertson) in Romania’s energy sector, in order to issue an opinion regarding the optimal method for analyzing the bankruptcy risk in the energy sector. The results show that there are significant differences regarding the analysis of the bankruptcy risk through the appliction of different models, proposing the Conan-Holder model as the most appropriate for this sector.

Keywords

• bankruptcy risk
• risk
• Altman
• Conan-Holder
• Taffler
• Robertson