IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2017v3p75-82.html
   My bibliography  Save this article

Financial Performance And The Business Risk In Agricultural Sector Of Romania

Author

Listed:
  • BURJA VASILE

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

  • BURJA CAMELIA

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

Abstract

The business risk is a permanent presence in the activities carried out by the companies. The financial decisions are often based on a compromise between risk and returns. To optimise the management of the companies, it is important to know the factors that generate risk and have a certain influence on the performance. This study has as main objective the explanation of the relationship between the financial performance and the factors that can be found within the microeonomic environment of the companies and determine the risk occurrence. The research is conducted on Romanian agricultural holdings from the vegetable sector, taking into account the period 2009 -2014. The research methodology is based on econometric modelling. The results of regression analysis indicate that the farm performance is largely influenced by various business risk factors, of which the most important are the financing structure (financial risk) and sales effectiveness (commercial risk). The findings helped us knowing the risk generating factors in the agricultural holdings activity, to find solutions for a proper management that leads to increased performance.

Suggested Citation

  • Burja Vasile & Burja Camelia, 2017. "Financial Performance And The Business Risk In Agricultural Sector Of Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 75-82, June.
    • Handle: RePEc:cbu:jrnlec:y:2017:v:3:p:75-82
    as

    Download full text from publisher

    File URL: http://www.utgjiu.ro/revista/ec/pdf/2017-03/09_BURJA%20VASILE,%20BURJA%20CAMELIA.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luminița Rus & Mărioara BeleneÛi & Dana Simona Gherai, 2016. "Accounting, Analysis And Auditing Of Information Regarding Tangible Assets In The Romanian Economic Entities," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(18), pages 1-6.
    2. Iuliana-Ioana Purcarea & Ion Stancu, 2008. "The Influence of R&D Policy on Performance of the Companies Listed with Bucharest Stock Exchange (through Intangible Assets)," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 9(9(526)), pages 03-10, September.
    3. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    4. Gallizo, Jose L. & Salvador, Manuel, 2003. "Understanding the behavior of financial ratios: the adjustment process," Journal of Economics and Business, Elsevier, vol. 55(3), pages 267-283.
    5. Kemény, Gábor & Varga, Tibor & Fogarasi, József & Tóth, Kristóf, 2012. "The development of Hungarian agricultural insurance system," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 12(27), pages 1-10, September.
    6. Camelia Burja & Vasile Burja, 2013. "Entrepreneurial Risk And Performance: Empirical Evidence Of Romanian Agricultural Holdings," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-21.
    7. Robert Engle, 2001. "GARCH 101: The Use of ARCH/GARCH Models in Applied Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 157-168, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saghin (Dima) Loredana Adriana & Zugravu Constanta Laura & Chiril Tatiana & Zugravu Gheorghe Adrian, 2024. "Green Business Audit Using Blockchain And Artificial Inteligence Technology," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 189-197, April.
    2. Saghin (Dima) Loredana Adriana & Zugravu Constanta Laura & Lazar (Gurgu-Lazar) Carmen & Mogildea Ludmila & Zugravu Gheorghe Adrian, 2024. "Blockchain Neutrosophic Model For Fuzzy Quality Certification Of Traditional Products," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 113-122, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Camelia Burja Decemrie, 2011. "Factors Influencing The Companies' Profitability," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-3.
    2. Camelia BURJA, 2020. "Economic Performance In Viticulture: Evidence From Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(22), pages 11-18.
    3. Burja Camelia, 2018. "Successful Companies And Influencing Factors," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 59-68, October.
    4. Camelia Burja, 2011. "Patrimonial Resources Management And The Economic Performance Of Companies," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 1-1.
    5. Tuba DERYA-BASKAN & Eda BALIKÇIOĞLU, 2018. "Firma Bileşenlerinin Halka Açık Perakende Firmalarında Kurumlar Vergisine Etkisi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    6. Simranjeet Singh & Harwinder Kaur, 2017. "Working Capital Management and Profitability: Evidence from Selected Steel Manufacturing Companies in India," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 8(2), pages 73-79, May.
    7. Chen, Catherine Huirong & Choy, Siu Kai & Tan, Yongxian, 2022. "The cash conversion cycle spread: International evidence," Journal of Banking & Finance, Elsevier, vol. 140(C).
    8. Sofie Balcaen & Sophie Manigart & Hubert Ooghe, 2011. "From distress to exit: determinants of the time to exit," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 407-446, August.
    9. Genesis Gyasi Sah & Judit Furedi-Fulop, 2022. "The Effects of Proper Inventory Management on the Profitability of SMEs," Technium Social Sciences Journal, Technium Science, vol. 32(1), pages 340-351, June.
    10. María Angélica Arbeláez & Alejandro Becerra & Francisco Fernández & David Forero, 2019. "El sector comercio en Colombia y el crédito de proveedores," Informes de Investigación 17610, Fedesarrollo.
    11. Torben G. Andersen & Tim Bollerslev & Peter Christoffersen & Francis X. Diebold, 2007. "Practical Volatility and Correlation Modeling for Financial Market Risk Management," NBER Chapters, in: The Risks of Financial Institutions, pages 513-544, National Bureau of Economic Research, Inc.
    12. Tully, Edel & Lucey, Brian M., 2007. "A power GARCH examination of the gold market," Research in International Business and Finance, Elsevier, vol. 21(2), pages 316-325, June.
    13. Siddiqi, Hammad, 2007. "Rational Interacting Agents and Volatility Clustering: A New Approach," MPRA Paper 2984, University Library of Munich, Germany.
    14. Naumoski Aleksandar, 2022. "Financial Policy and Companies’ Sustainable Growth," Economic Themes, Sciendo, vol. 60(3), pages 281-301, September.
    15. Malik, Zafar Ullah & Iqbal, Athar, 2012. "Affect of Working Capital Management on Firms Profitability in Sugar Industry of Pakistan," MPRA Paper 41436, University Library of Munich, Germany.
    16. Mai, Nhat Chi, 2022. "Capital Raising and Management of Vietnamese Small and Medium Sized Enterprises after Integrating into Global Economy," OSF Preprints dv68m, Center for Open Science.
    17. Liviu-Stelian BEGU & Silvia Spataru & Erika Marin, 2012. "Investigating The Evolution Of Ron/Eur Exchange Rate: The Choice Of Appropriate Model," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 1(2), pages 23-39, DECEMBER.
    18. Fan, Chenguang & Bae, Seongho & Liu, Yu, 2024. "Can FinTech transform corporate liquidity? Evidence from China," Innovation and Green Development, Elsevier, vol. 3(2).
    19. Mahdi Salehi & Reza Ghorbanzadeh, 2016. "The influence of firms' capital expenditure on firms' working capital management," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(3), pages 287-301.
    20. Duo Xu & Christopher Gan & Zhaohua Li & Pengcheng Wang, 2021. "Earnings, Working Capital and Dividend Payout: Evidence from the London Stock Exchange," Annals of Economics and Finance, Society for AEF, vol. 22(2), pages 421-449, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2017:v:3:p:75-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.