Payment capacity sensitivity factors Cover Image

Payment capacity sensitivity factors
Payment capacity sensitivity factors

Author(s): Daniel BRINDESCU OLARIU
Subject(s): Economic policy, Public Finances, Accounting - Business Administration
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Payment capacity; Sensitivity; Risk Cash-flow; Financial analysis;

Summary/Abstract: The current study focuses on the sensitivity of the corporate payment capacity. Through the nature of the subject, the research is based on simulating variations of the forecasted cash-flows of the companies included in the sample. The study employs 391 forecasted yearly cash-flows statements collected from 50 companies from Timis County (Romania), as well as the detailed hypotheses of the forecasts. The results of the study facilitate the determination and classification of the main sensitivity factors for the payment capacity at sample level, the establishment of general benchmarks for the payment capacity (as no such benchmarks currently exist in the Romanian literature) and the identification of the mechanisms through which the variation of different factors impacts the payment capacity.

  • Issue Year: 2014
  • Issue No: 31
  • Page Range: 33-40
  • Page Count: 8
  • Language: Romanian