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An Analysis of Determinants of Corporate Financial Performance: Evidence from the Bucharest Stock Exchange Listed Companies

Author

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  • Georgeta Vintila

    (Department of Finance, Bucharest University of Economic Studies, Bucharest, Romania)

  • Elena Alexandra Nenu

    (Department of Finance, Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The purpose of this paper is to investigate potential factors of influence on corporate financial performance. The analysis was conducted on Romania's case and included a sample of 46 companies listed on the Bucharest Stock Exchange, within 2009-2013 period. In the first part of the analysis the companies have been classified using factor analysis and further, based on it, we have performed a cluster analysis using SAS program. Subsequently, selected variables were tested using multivariate regression models for unbalanced panel data. The results are contradictory regarding the impact of company size. Based on the accounting approach we obtained a positive impact determined by the number of employees, while based on the market approach, performance is negatively correlated with total assets. In terms of indebtedness a negative relationship was revealed. At the same time, the relationship regarding transparency and disclosure in reporting was not statistically validated.

Suggested Citation

  • Georgeta Vintila & Elena Alexandra Nenu, 2015. "An Analysis of Determinants of Corporate Financial Performance: Evidence from the Bucharest Stock Exchange Listed Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 732-739.
    • Handle: RePEc:eco:journ1:2015-03-12
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    Cited by:

    1. Feras Izzat Kasasbeh, 2021. "Impact of financing decisions ratios on firm accounting-based performance: evidence from Jordan listed companies," Future Business Journal, Springer, vol. 7(1), pages 1-10, December.
    2. Neeraj Gupta & Jitendra Mahakud, 2020. "CEO characteristics and bank performance: evidence from India," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 35(8), pages 1057-1093, August.
    3. Ozcan Isik & Umit Firat Tasgin, 2017. "Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 66-75, August.
    4. Bilal Ahmed & Sadaf Alam, 2018. "Impact Of Privatisation On Financial Performance And Efficiency Of State Owned Enterprises," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 158-173.
    5. Bilal Ahmed & Sadaf Alam, 2018. "Impact Of Privatisation On Financial Performance And Efficiency Of State Owned Enterprises," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 14-13.
    6. Yasir Hayat Mughal & Mahad Jehangir & Muzzamil Khan & Mehran Saeed, 2021. "Nexus between corporate social responsibility and firm’s performance: A panel data approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 3173-3188, April.

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    More about this item

    Keywords

    Financial Performance; Panel Data; Transparency;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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