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The Correlation Working Capital - Self-Financing Capacity At The Companies From Hotel And Restaurant Industry Listed On Bucharest Stock Exchange

Author

Listed:
  • PAVEL Ruxandra Maria

    (Lucian Blaga University of Sibiu)

  • CIUHUREANU Alina Teodora

    ("Nicolae Bălcescu" Land Forces Academy)

Abstract

The present paper determines the influence of the changes in working capital on the self-financing capacity, using the panel type simple linear regression model. The research sample consists of 22 companies from hotel and restaurant industry, listed on Bucharest Stock Exchange, the period 2007-2015. The decision between the random effects model and the fixed effects model was based on the Hausman test application and the criteria associated information of the two models. The hypothesis was confirmed so there is a direct relation between working capital and self-financing capacity, meaning that one unit change in working capital leads to a change of 1,505 units in the self-financing capacity.

Suggested Citation

  • PAVEL Ruxandra Maria & CIUHUREANU Alina Teodora, 2017. "The Correlation Working Capital - Self-Financing Capacity At The Companies From Hotel And Restaurant Industry Listed On Bucharest Stock Exchange," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(2), pages 127-137, August.
    • Handle: RePEc:blg:reveco:v:69:y:2017:i:2:p:127-137
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/69211pavel&ciuhureanu.pdf
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    References listed on IDEAS

    as
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    4. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    working capital; self-financing capacity; data panel; Pearson correlation; Hausman test;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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