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Determinants of Financial Performance for the Clothing Industry: A Romanian Approach

Author

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  • Teodora Maria Suciu

    (“1 Decembrie 1918” University of Alba Iulia, Romania)

Abstract

In the present paper, an experimental study is developed on how asset-liability-equity-employees influence the financial performance of companies in the Romanian garment industry with the aim of identifying the managerial decision-making factors in order to develop businesses in this economic sector. The financial performance was influenced by the independent variables of the patrimonial structure and the human resource: fixed assets, current assets, advance expenses, equity, liabilities and the average number of employees. The results reveal that current assets, advance expenses and total liabilities positively affect financial performance, while fixed assets negatively affect financial performance. The findings show us that companies in the Romanian clothing industry tend to focus on short-term financial performance. A statistically significant impact and positive effect was identified in the case of equity and the average number of employees influencing financial performance (Sales). Two of the six hypotheses based on the analysis model of the financial performance of Romanian clothing companies are confirmed.

Suggested Citation

  • Teodora Maria Suciu, 2024. "Determinants of Financial Performance for the Clothing Industry: A Romanian Approach," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 89-97.
    • Handle: RePEc:ddj:fseeai:y:2024:i:1:p:89-97
    DOI: 10.35219/eai15840409393
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    References listed on IDEAS

    as
    1. Serhii Lehenchuk & Iryna Zhyhlei & Olena Ivashko & Grzegorz Gliszczyński, 2023. "The Impact of Sustainability Reporting on Financial Performance: Evidence from Turkish FBT and TCL Sectors," Sustainability, MDPI, vol. 15(20), pages 1-13, October.
    2. Muhammad Haris & HongXing Yao & Gulzara Tariq & Ali Malik & Hafiz Mustansar Javaid, 2019. "Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan," JRFM, MDPI, vol. 12(2), pages 1-26, April.
    3. Lenka Stryckova, 2023. "The Impact of Family Ownership on Capital Structure and Business Performance," IJFS, MDPI, vol. 11(4), pages 1-17, October.
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