The Analysis of the Coherence of the Change in the Financial Situation

Abstract

Nowadays, businesses face many challenges. Changes in the economy are not one-off; change of state of the company from going bankrupt to financially healthy and vice versa is a gradual process. This process is dynamic and influenced by many macroeconomic and microeconomic factors. Therefore, the knowledge of the overall process of changing in the financial situation has a crucial influence on corporate decision-making. The paper focuses on the description of different forms of financial distress as well as the analysis and description of corporate failure as an integral, continuous process in three dimensions.

Institutions, Culture, or Interaction: What Determines the Financial Market Development in Emerging Markets?

“…Sustainable economic development may only be assured when the institutional framework is enhanced [11,30,43]. Overall findings are consistent with the strand of literature, for example, Smaoui, Grandes, and Akindele [37] show that bureaucratic quality positively explains the bond market development.…”

“…Financial development improves economic well-being with the supportive role of the institutional framework (Todorovic et al) [29]. The effect of the financial product on economic performance is more substantial when the financial system is embedded in a sound institutional framework (Kliestikova et al) [30]. Ro et al [31] claim that financial market efficiency and competitiveness are more critical to support economic growth than the size of the financial market.…”

“…Highly transparent countries have low transaction costs because they have lower information asymmetry than the most corrupt nations. Sustainable economic development may only be assured when the institutional framework is enhanced [11,30,43].…”