Acta Universitatis Danubius. Œconomica, Vol 9, No 5 (2013)

Profitability and financial instability

Cristian Ionescu

Abstract


Profitability, indebtedness and liquidity are key factors to financial stability. Therefore, an analysis of the situation of the corporate sector, based on balance sheet and profit and loss account data, is very important from the perspective of financial stability. This paper aims to provide a quantitative study regarding micro-economic aspects of financial fragility, which may lead to financial crises.

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