Methodology for Measuring Financial Stability in Countries

Abstract

This research proposes for international analysis, a methodology for measuring the level of financial stability in any country in the world. In this sense, it has been inspired on the financial analysis model that modern financial theory generally recommends. This research is quantitative, cross-sectional, it is non-experimental and descriptive. It is quantitative because it provides numerical results. It is cross-sectional because it used economic indicators corresponding to the year 2010. It is non experimental because the sources of data have not been manipulated and have been obtained from good qualified sources of information. It is descriptive because this research figures out why some countries like China and Russia are better prepared than other countries in order to face financial and economic disturbances that may happen in the future. In other hand it explains why countries like Greece, Ireland and Portugal have been subjected to face an acute financial and economic crisis, from an innovative point of view based in the financial statement analysis.