Is the Corporate Solvency Conundrum Primarily a Balkan Issue or a Broader European Continental Misunderstanding?

As a consequence of the coronavirus outbreak, the corporate “(in)solvency” issue will probably be one of the most frequently discussed topics in the business and economics fields. We analysed the meaning of the term solvency and the solvency assessment methodology in the papers published in the jour...

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Bibliographic Details
Published in:Ikonomicheski izsledvanii͡a 2022 (1), p.72-93
Main Authors: Pavlović, Vladan, Knežević, Goranka, Callado, Antônio André Cunha
Format: Article
Language:English
Subjects:
Business Economy / Management
Economy
Online Access:Get full text
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Summary:As a consequence of the coronavirus outbreak, the corporate “(in)solvency” issue will probably be one of the most frequently discussed topics in the business and economics fields. We analysed the meaning of the term solvency and the solvency assessment methodology in the papers published in the journals indexed in SSCI from 01.01.2017 to 31.12.2019. We have found that the term “solvency” is inadequately used by the authors from Roman law countries, particularly by those who are from the East European countries. We have also found that the inadequate use of the solvency assessment methodology is conditioned by the scientific field of the researchers. The further the authors are from the legal and accounting fields, the more they are inclined to misuse the term (in)solvent and to introduce the solvency ratio. Finally, we explained the probable origin of this confusion.
ISSN:0205-3292