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Analysis Of The Correlations Between The Degree Of Indebtedness And The Performance Of The Economic Entities From Emerging Economy

Author

Listed:
  • Anatol MELEGA

    (Åžtefan cel Mare University)

  • Anamaria Geanina MACOVEI

    (Åžtefan cel Mare University)

  • Veronica GROSU

    (of Accounting, Auditing and Finance, Faculty of Economics, Administration and Business, Åžtefan cel Mare University)

  • Marian SOCOLIUC

    (Åžtefan cel Mare University)

Abstract

The purpose of this research is to assess the performance of the economic entities that are part of the BRICS economies (Brazil, Russia, India, China, South Africa). Thus, the following objectives have been set to achieve the intended purpose: O1 - analysis and evaluation of the economic performance that were reported by entities in the emerging BRICS economies; O2 - identification of the correlations between the performance indicators that were reported by entities from emerging BRICS economies (Return on Assets; level of indebtedness; equity ratio; Earnings Before Interest, Taxes, Depreciation, and Amortization growth). For these objectives to be achieved, we have collected and analyzed the financial data from the reports of 50 companies that are listed on a regulated market in Brazil, Russia, India, China and South Africa. This research focuses on assessing the effects of the financial report and of the level of indebtedness on the performance of the entities from emerging BRICS economies. Research is relevant to current and potential investors interested in emerging BRICS economies, as well as for other categories of stakeholders.

Suggested Citation

  • Anatol MELEGA & Anamaria Geanina MACOVEI & Veronica GROSU & Marian SOCOLIUC, 2021. "Analysis Of The Correlations Between The Degree Of Indebtedness And The Performance Of The Economic Entities From Emerging Economy," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(23), pages 1-6.
    • Handle: RePEc:alu:journl:v:2:y:2021:i:23:p:6
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    References listed on IDEAS

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    2. Himmelberg, Charles P. & Hubbard, R. Glenn & Palia, Darius, 1999. "Understanding the determinants of managerial ownership and the link between ownership and performance," Journal of Financial Economics, Elsevier, vol. 53(3), pages 353-384, September.
    3. Majumdar, Sumit K & Chhibber, Pradeep, 1999. "Capital Structure and Performance: Evidence from a Transition Economy on an Aspect of Corporate Governance," Public Choice, Springer, vol. 98(3-4), pages 287-305, March.
    4. Juan Carlos Echeverry & Leopoldo Fergusson & Roberto Steiner & Camila Aguilar, 2003. "Determinants And Consequences Of Foreign In Debtedness In Colombian Firms," Documentos CEDE 2333, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Darush Yazdanfar & Peter Öhman, 2015. "Debt financing and firm performance: an empirical study based on Swedish data," Journal of Risk Finance, Emerald Group Publishing, vol. 16(1), pages 102-118, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    BRICS; performance; emerging market; key performance indicators;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls

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