A Credit Risk Analysis Approach Using the Fleuriet Model

Authors

DOI:

https://doi.org/10.17524/repec.v12i3.1816

Keywords:

Modelo Dinâmico, Risco de crédito, Falências, Indicadores Financeiros

Abstract

Objective: To construct a model that can assess the credit risk in Brazilian publicly-traded companies, using indicators from Fleuriet’s model of financial analysis. Method: Methodologically, the research was defined as quantitative, with a descriptive design. The financial statements were collected from Economática and the website BM&FBOVESPA. The sample consisted of 121 companies, being 70 solvent and 51 insolvent, from different sectors. Results: For the financial structure, working capital and working capital requirement indicators, the companies seek to achieve a constant growth model, expanding or gaining markets, in view of the continuing need for additional working capital over time. The results found for the liquidity thermometer demonstrate the importance of the financial accounts called treasury account to calculate the company’s short-term corporate liquidity and solvency. Finally, financial indebtedness as a structural index contributed significantly to the model. Contributions: This study can contribute to the Brazilian literature by evidencing that some of the indicators in Fleuriet’s model are significant to assess the credit risk in Brazilian publicly traded companies.

Author Biographies

José Willer do Prado, Universidade Federal de Lavras - UFLA

Departamento de Administração e Economia (DAE)

Francisval de Melo Carvalho, Universidade Federal de Lavras - UFLA

Departamento de Administração e Economia (DAE)

Gideon Carvalho de Benedicto, Universidade Federal de Lavras - UFLA

Departamento de Administração e Economia (DAE)

Valderí de Castro Alcântara, Universidade Federal de Lavras - UFLA

Departamento de Administração e Economia (DAE)

Antonio Carlos dos Santos, Universidade Federal de Lavras - UFLA

Departamento de Administração e Economia (DAE)

Downloads

Published

2018-08-30

How to Cite

Prado, J. W. do, Carvalho, F. de M., Benedicto, G. C. de, Alcântara, V. de C., & Santos, A. C. dos. (2018). A Credit Risk Analysis Approach Using the Fleuriet Model. Journal of Education and Research in Accounting (REPeC), 12(3). https://doi.org/10.17524/repec.v12i3.1816

Issue

Vol. 12 No. 3 (2018): July-September

Section

Articles

License

Copyright (c) 2018 Journal of Education and Research in Accounting (REPeC)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with this journal agree to the following terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under Creative Commons Attribution 3.0 Unported License, which allows the sharing of the work and recognition of authorship and its initial publication in this journal. This license allows others to distribute, remix, adapt, or create derivative works, even for commercial purposes, provided credit is given for the original creation.

b)There is no financial compensation to the authors in any capacity, for articles published in RePEc.

c) The articles published in RePEc are the sole responsibility of the authors.