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Determinants Of Performance During Covid-19 Pandemic: An Empirical Research On Pharmaceutical Companies Listed On The Bucharest Stock Exchange

Author

Listed:
  • Larissa Batrancea

    (Babes-Bolyai University Cluj-Napoca)

Abstract

Recent studies report that the majority of industries have experienced drastic decreases in sales within the context of the coronavirus pandemic. Nevertheless, considering the high demand for medicine and medical equipment triggered by efforts of fighting the virus, companies in the pharmaceutical industry have managed to maintain a rather steady financial equilibrium, despite the fact that they have registered a mitigation in performance indicators. This empirical research has shown that all five pharmaceutical companies listed on the Bucharest Stock Exchange and included in the sample have reported slight decreases related to both performance indicators (i.e., return on assets, return on equity, profit margin) and financial equilibrium (i.e., current liquidity ratio, quick ratio, cash ratio) when comparing 2020 results with those reported in the period 2010“2019. The econometric analyses have revealed that the financial equilibrium indicators and the performance indicators are statistically linked, meaning that an improvement in the value of equilibrium indicators yields an increase in the performance of companies operating in the Romanian pharmaceutical industry.

Suggested Citation

  • Larissa Batrancea, 2021. "Determinants Of Performance During Covid-19 Pandemic: An Empirical Research On Pharmaceutical Companies Listed On The Bucharest Stock Exchange," Management Strategies Journal, Constantin Brancoveanu University, vol. 51(1), pages 136-142.
    • Handle: RePEc:brc:journl:v:51:y:2021:i:1:p:136-142
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    References listed on IDEAS

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    2. Harianto Lim & Rofikoh Rokhim, 2020. "Factors affecting profitability of pharmaceutical company: an Indonesian evidence," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 48(5), pages 981-995, October.
    3. Ali İhsan Akgün & Ayyüce Memiş Karataş, 2020. "Investigating the relationship between working capital management and business performance: evidence from the 2008 financial crisis of EU-28," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 17(4), pages 545-567, September.
    4. repec:eme:mfppss:eb018624 is not listed on IDEAS
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    More about this item

    Keywords

    liquidity; return on assets; return on equity; profit margin; COVID-19;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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