Proposal for a Decision Support System to Predict Financial Distress

In the context of economic instability a decision support system that could provide early warning signals of financial distress to a company a few years before actually turning to insolvency could play an important role in the decision making processes inside a company. Thus, the aim of this paper...

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Main Author: Mădălina Ecaterina POPESCU
Format: Article
Language:English
Published: Editura ASE 2015-03-01
Series:Revista de Management Comparat International
Subjects:
Online Access:https://www.rmci.ase.ro/no16vol1/09.pdf
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author Mădălina Ecaterina POPESCU
author_facet Mădălina Ecaterina POPESCU
author_sort Mădălina Ecaterina POPESCU
collection DOAJ
description In the context of economic instability a decision support system that could provide early warning signals of financial distress to a company a few years before actually turning to insolvency could play an important role in the decision making processes inside a company. Thus, the aim of this paper consists in developing a decision support system for financial distress for the case of the Romanian companies listed on the Bucharest Stock Exchange. A practical solution for predicting financial distress with one or even two years in advance is presented and the results of the models’ prediction accuracy are encouraging us to believe that these models can actually improve the strategic management and planning departments in a company.
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institution Kabale University
issn 1582-3458
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series Revista de Management Comparat International
spelling doaj-art-908ce4c04c1142f48455596c1c6797b22024-12-05T13:23:19ZengEditura ASERevista de Management Comparat International1582-34582601-09682015-03-01161112118Proposal for a Decision Support System to Predict Financial Distress Mădălina Ecaterina POPESCU0The Bucharest University of Economic Studies, Romania; Senior Researcher at The National Scientific Research Institute for Labour and Social ProtectionIn the context of economic instability a decision support system that could provide early warning signals of financial distress to a company a few years before actually turning to insolvency could play an important role in the decision making processes inside a company. Thus, the aim of this paper consists in developing a decision support system for financial distress for the case of the Romanian companies listed on the Bucharest Stock Exchange. A practical solution for predicting financial distress with one or even two years in advance is presented and the results of the models’ prediction accuracy are encouraging us to believe that these models can actually improve the strategic management and planning departments in a company. https://www.rmci.ase.ro/no16vol1/09.pdfsmesdecision support systemfinancial distressprediction
spellingShingle Mădălina Ecaterina POPESCU
Proposal for a Decision Support System to Predict Financial Distress
Revista de Management Comparat International
smes
decision support system
financial distress
prediction
title Proposal for a Decision Support System to Predict Financial Distress
title_full Proposal for a Decision Support System to Predict Financial Distress
title_fullStr Proposal for a Decision Support System to Predict Financial Distress
title_full_unstemmed Proposal for a Decision Support System to Predict Financial Distress
title_short Proposal for a Decision Support System to Predict Financial Distress
title_sort proposal for a decision support system to predict financial distress
topic smes
decision support system
financial distress
prediction
url https://www.rmci.ase.ro/no16vol1/09.pdf
work_keys_str_mv AT madalinaecaterinapopescu proposalforadecisionsupportsystemtopredictfinancialdistress