On December 29, 2018, the Government Emergency Ordinance no. 114/2018 has been published. This Ordinance, among others, established a multitude of measures, both economic and fiscal that aimed companies acting in the energy field. The monetary contribution, received from the license holders in the field of energy, was set at the level of 2 %, which means an increase of 20 times of this duty. These companies also have the obligation to sell the natural gas quantities, resulting from the current domestic production activity, at the price of 68 lei / MWh to eligible suppliers and final customers. All these measures have had a direct impact on companies acting in the energy field, affecting their profitability and simultaneously their ability to carry out investment projects. This paper analyzes the way the e companies listed on Bucharest Stock Exchange, acting in energy field, were affected by Government Emergency Ordinance no. 114/2018 measures.
Insolvency represents the state of the debtor’s patrimony characterized by insufficient funds available for the payment of certain, liquid and due debts. It may occur even in case of strong companies, for example, in case of listed companies, generating loses for investors. In economic theory, a series of insolvency risk prediction models were developed, based on the method of scores, the most known and used being the Altman model. At the present moment, five companies, traded at Bucharest Stock Exchange are insolvent. The aim of this paper is to establish if the Altman model can successfully be used for Romanian traded companies, to determine the risk of insolvency.
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