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Does Short Term Debt Affect Profitability? Evidence From The Romanian Listed Companies

Author

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  • MILOS LAURA RAISA

    (UNIVERSITY EFTIMIE MURGU OF RESITA)

  • MILOS MARIUS CRISTIAN

    (UNIVERSITY EFTIMIE MURGU OF RESITA)

Abstract

This study aims at providing new empirical evidence on the influence of debt (both on short and long term) on corporate profitability, with application to the Romanian companies listed on the Bucharest Stock Exchange. Panel data are analyzed for 50 companies belonging to different fields of activity during 2003-2014 using a fixed effect regression model. After we control for size, growth, liquidity, and tangibility of assets, the results reveal that short-term debt has a negative influence on corporate profitability.

Suggested Citation

  • Milos Laura Raisa & Milos Marius Cristian, 2015. "Does Short Term Debt Affect Profitability? Evidence From The Romanian Listed Companies," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 228-233, December.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:6special:p:228-233
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    References listed on IDEAS

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