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Study on the Correlation Between Working Capital and Economic Value Added for the Companies Relating to the Hotel and Restaurant Industry Listed on the Bucharest Stock Exchange

Author

Listed:
  • Nicolae BalteÈ™

    („Lucian Blaga†University of Sibiu)

  • Ruxandra-Maria Pavel

    („Lucian Blaga†University of Sibiu)

Abstract

In the present study was determined the influence of the value change of the working capital on the variation of the economic value added indicator on a sample consisting of a number of 26 companies (2007-2017) belonging to the hotel and restaurant industry, listed on the Bucharest Stock Exchange. The correlation between the indicators was achieved by using the multiple linear regression method. The study showed that there is a strong link between the two economic indicators, over 80% of the change in economic value being explained by the change in working capital. It was found that a 1% increase in working capital, for the period 2007-2017, had the effect of increasing the economic value added by 0.38%.

Suggested Citation

  • Nicolae BalteÈ™ & Ruxandra-Maria Pavel, 2020. "Study on the Correlation Between Working Capital and Economic Value Added for the Companies Relating to the Hotel and Restaurant Industry Listed on the Bucharest Stock Exchange," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 838-844, August.
    • Handle: RePEc:ovi:oviste:v:xx:y:2020:i:1:p:838-844
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    Cited by:

    1. Filipa Campos & Luís Lima Santos & Conceição Gomes & Lucília Cardoso, 2022. "Management Accounting Practices in the Hospitality Industry: A Systematic Review and Critical Approach," Tourism and Hospitality, MDPI, vol. 3(1), pages 1-22, February.
    2. Anca Antoaneta Vărzaru & Claudiu George Bocean & Mădălina Giorgiana Mangra & Gabriel Ioan Mangra, 2022. "Assessing the Effects of Innovative Management Accounting Tools on Performance and Sustainability," Sustainability, MDPI, vol. 14(9), pages 1-16, May.

    More about this item

    Keywords

    working capital; economic value added; multiple linear regression; financial performance;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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