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The Corellation Risk – Return On Emergent Markets: The Romanian Case

Author

Listed:
  • Prof. Alexandru Buglea Ph. D

    (West University of Timișoara Faculty of Economics and Business Administration Timișoara, Romania)

  • Prof. Ion Lala - Popa Ph. D

    (West University of Timișoara Faculty of Economics and Business Administration Timișoara, Romania)

  • Assist. Cecilia – Nicoleta Aniș Ph. D Student

    (West University of Timișoara Faculty of Economics and Business Administration Timișoara, Romania)

Abstract

Risk is an important factor in explaining capital structure choices of companies. This paper proposes a framework where we realized a study case: in this study we test if return on assets and return on equity has influence on the risk, both on long and short term. For this purposes, we conduct an empirical research that covers 33 selected companies traded at the Bucharest Stock Exchange within the time period 2005-2009. For the study our results reveal that dynamic global risk can be associated to a low intensity with total assets performance of the company’s. Investments efficiency and the adoption of certain financial positions appear to be key factors in the dynamics of, while total asset performance is weak associated with the dynamics of global risk.

Suggested Citation

  • Prof. Alexandru Buglea Ph. D & Prof. Ion Lala - Popa Ph. D & Assist. Cecilia – Nicoleta Aniș Ph. D Student, 2011. "The Corellation Risk – Return On Emergent Markets: The Romanian Case," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(39), pages 35-42, May.
    • Handle: RePEc:aio:aucsse:v:1:y:2011:i:8:p:35-42
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    File URL: http://feaa.ucv.ro/AUCSSE/0039v2-004.pdf
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    References listed on IDEAS

    as
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    3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    risk; return on equity; GMM System estimator; return on assets; activity sector;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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