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Working Capital And Corporate Strategy Patterns In Working Capital Of Romanian Pharmaceutical Companies Quoted On Bucharest Stock Exchange

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  • Alin Constantin RADASANU

    (Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, alin.radasanu@ropharma.ro, Iasi, Romania,)

Abstract

The competitive nature of the business environment requires firms to adjust their strategies and adopt good financial policies to sustain growth. Most firms have an important amount of cash invested in current assets, as well a substantial amounts of current liabilities as a source of financing. This paper therefore analyses the working capital structure and financing pattern of Romanian Pharmaceutical Companies quoted on Bucharest Stock Exchange. Structural differences in working capital and the financing pattern of the sample firms are analysed and the results showed significant structural changes over the 2009-2014 period. The research revealed a decrease in current asset investment in relation to sales and a decreasing trend in the short-term component of working capital financing; in particular equity funds of Romanian producers financed the major part of working capital.

Suggested Citation

  • Alin Constantin RADASANU, 2015. "Working Capital And Corporate Strategy Patterns In Working Capital Of Romanian Pharmaceutical Companies Quoted On Bucharest Stock Exchange," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 89-103, September.
    • Handle: RePEc:aic:jopafl:y:2015:v:s2:p:89-103
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    References listed on IDEAS

    as
    1. Preve, Lorenzo & Sarria-Allende, Virginia, 2010. "Working Capital Management," OUP Catalogue, Oxford University Press, number 9780199737413.
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    3. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    4. Adina Elena Dănuleţiu, 2010. "Working Capital Management And Profitability: A Case Of Alba County Companies," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(12), pages 1-36.
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