Abstract
In this
paper, a theoretical and operational analysis was carried out on the issue of
going concern. First of all, from a theoretical point of view, the subject of
going concern has been examined in-depth to explain how the Covid-19 health
emergency has impacted the companies' ability to carry out their activities
shortly. It also achieves this aim by implementing operational research having
as its object forty companies belonging to three macro-sectors: industrial,
financial services and non-financial services, whose stocks make up the Italian
stock exchange index Ftse Mib (Financial Times Stock Exchange Milan. The FTSE
MIB is the benchmark stock index in Italy. It consists of a basket of 40 stocks
on the Euronext Milan and Euronext MIV Milan markets identified by
capitalisation, trading volume and sector).
The
theoretical and operational analysis of the concept of going concern was
carried out considering, also, the bankruptcy alert indices identified by the
Italian National Council of Chartered Accountants and Accounting Experts. These
indicators were introduced by Italian legislation with the entry into force of
the new Code of Corporate Crisis to identify possible economic and financial
instability situations before the state of crisis. The research, as mentioned
above, was carried out using the alert indices recognised by the National
Council of Chartered Accountants and Accounting Experts. This research emerged
that these indices are actually predictive of a company crisis. It also
completed the study illustrated in this paper by comparing the results of the
bankruptcy's predictive alert indices and Altman's Z-score. It reached the
trends identified by the alert indices with the results obtained from Altman's
Z-score, and from this comparison, it can see that the final results are
similar. The comparison between the alert ratios illustrated by the National
Council of Chartered Accountants and Accounting Experts and the results of
Altman's Z-score allows us to affirm two observations: undoubtedly, the alert
ratios are characterised by a high predictive validity regarding the bankruptcy
of companies and, in addition, that these ratios lead to similar results to
those that can obtain by applying Altman's Z-score. In this paper, a
theoretical and operational analysis was carried out on the issue of going
concern. First of all, from a theoretical point of view, the subject of going
concern has been examined in-depth to explain how the Covid-19 health emergency
has impacted the companies' ability to carry out their activities shortly. It
also achieves this aim by implementing operational research having as its
object forty companies belonging to three macro-sectors: industrial, financial
services and non-financial services, whose stocks make up the Italian stock
exchange index Ftse Mib (Financial Times Stock Exchange Milan. The FTSE MIB is
the benchmark stock index in Italy. It consists of a basket of 40 stocks on the
Euronext Milan and Euronext MIV Milan markets identified by capitalization,
trading volume and sector).
The theoretical and operational
analysis of the concept of going concern was carried out considering, also, the
bankruptcy alert indices identified by the Italian National Council of
Chartered Accountants and Accounting Experts. These indicators were introduced
by Italian legislation with the entry into force of the new Code of Corporate
Crisis to identify possible economic and financial instability situations
before the state of crisis. The research, as mentioned above, was carried out
using the alert indices recognized by the National Council of Chartered
Accountants and Accounting Experts. This research emerged that these indices
are actually predictive of a company crisis. It also completed the study
illustrated in this paper by comparing the results of the bankruptcy's predictive
alert indices and Altman's Z-score. It reached the trends identified by the
alert indices with the results obtained from Altman's Z-score, and from this
comparison, it can see that the final results are similar.
-Today |
274 |
 -Yesterday |
416 |
 -This Month |
22519 |
 -Last Month |
24473 |
 -All Days |
227075 |
IJBMS by IPRPD is licensed under a Creative Commons Attribution 4.0 International License.