THE PROPAGATION OF INSOLVENCY AMONG BUSINESS IN ROMANIA
In the light of the current economic climate, the business insolvency phenomenon gained major attention due to its widespread consequences. Given the broad topic of research, the present study aims to identify whether a domino effect exists among companies filing for insolvency during 2006 - 2013. T...
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| Format: | Article |
| Language: | English |
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Alexandru Ioan Cuza University of Iasi
2015-10-01
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| Series: | EURINT |
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| Online Access: | http://cse.uaic.ro/eurint/proceedings/index_htm_files/EURINT2015_BUC.pdf |
| Summary: | In the light of the current economic climate, the business insolvency phenomenon gained major attention due to its widespread consequences. Given the broad topic of research, the present study aims to identify whether a domino effect exists among companies filing for insolvency during 2006 - 2013. The interest in this narrow aspect derives from the assumption that default companies propagate shocks throughout the activities of their suppliers, creditors, customers, shareholders, society and the economy. For this purpose, an ARIMA(p,d,q) model has been estimated, as it provides insight on how own lagged values and innovations influence the present occurrence of the phenomenon. ltic Sea Region, Danube Region and Alpine Region) and offers some solutions so that economic cooperation can improve. |
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| ISSN: | 2393-2384 2393-2384 |