An Assessment of the Bankruptcy Risk on the Romanian Capital Market

In this article, we use statistical models, such as Principal Component Analysis, Cluster Analysis Discriminant Analysis and Altman model to asses the bankruptcy risk on the Romanian capital market. Working on the financial data for the fiscal year 2012, we identify 3 groups of companies listed on the Bucharest Stock Exchange, based on their associated bankruptcy risk. The obtained results can be used by professionals and investors to build appropiate investment strategies, adding new insights on the Romanian capital market. Also, the presented method can function as an early-warning mechanism, helping the authorities adjust their regulatory and supervising tools.