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The Correlation Between Financial Profitability And Stock Market Performance Of Companies Listed On The Bucharest Stock Exchange

Author

Listed:
  • Livia, PREDA BUZGURESCU Olimpia

    (University of Craiova (ROMANIA))

  • Elena, NEGRU BONESCU

    (University of Craiova (ROMANIA))

Abstract

This paper highlights the correlation between financial profitability and the performance of the stock market of the companies listed on the Bucharest Stock Exchange. The sample consists of 30 Romanian companies from different fields of activity to compare the profitability with the financial structure to highlight the change in the market value of the shares. For highlighting the profitability of the companies, we used the economic rate of return on assets, the rate of financial return and the rate of return on sales, and measuring the stock market performance the market capitalization and the price earning ratio. This subject is very important for all investors in the capital market, regardless of the area of activity of the companies, because the financial profitability and the performance of the stock market are relevant indicators for financial investments.

Suggested Citation

  • Livia, PREDA BUZGURESCU Olimpia & Elena, NEGRU BONESCU, 2020. "The Correlation Between Financial Profitability And Stock Market Performance Of Companies Listed On The Bucharest Stock Exchange," Journal of Economic and Social Development, Clinical Journals Press, vol. 7(02), pages 01-15, September.
    • Handle: RePEc:ris:joeasd:0067
    as

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    References listed on IDEAS

    as
    1. Dias, Alexandra, 2013. "Market capitalization and Value-at-Risk," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5248-5260.
    2. Leonardo Becchetti & Stefania Di Giacomo, 2007. "Deviations from Fundamentals in US and EU Stock Markets: A Comparative Analysis," The European Journal of Finance, Taylor & Francis Journals, vol. 13(3), pages 195-226.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    performance; Romanian companies; Bucharest Stock Exchange; linear regression; net income; ROA; ROE; ROS; PER; market capitalization;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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