IDEAS home Printed from https://ideas.repec.org/a/rom/rmcimn/v24y2023i5p815-825.html
   My bibliography  Save this article

Effect of Market Capitalization on the Association between Firm Size and Corporative Performance of Listed Companies at Bucharest Stock Exchange in Romania

Author

Listed:
  • Angelica BUBOI (DANAILA)

    (Bucharest University of Economic Studies, Romania)

  • Cristina Gabriela COSMULESE

    (Stefan cel Mare University of Suceava, Romania)

Abstract

This article's aim is to examine the indicators thought to be important for evaluating performance when ensuring the sustainability of the business and examining the relationship between stock market performance and financial performance. This research is grounded in an empirical study that was conducted using data gathered from the financial statements and reports of 68 Romanian companies listed on the Romanian Stock Exchange, representing a variety of industries. The period analyzed was between 2018 and 2022 and in order to obtain the results and validate the preset hypotheses, the econometric software package SPSS version 26 was used. The study's output is the creation of an econometric model that makes it possible to evaluate how stock market capitalization affects an entity's financial performance. The model can be helpful for practitioners or researchers in the field of economic sciences who wish to highlight their financial issues and provide as credible a financial diagnosis as possible.

Suggested Citation

  • Angelica BUBOI (DANAILA) & Cristina Gabriela COSMULESE, 2023. "Effect of Market Capitalization on the Association between Firm Size and Corporative Performance of Listed Companies at Bucharest Stock Exchange in Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 815-825, December.
    • Handle: RePEc:rom:rmcimn:v:24:y:2023:i:5:p:815-825
    as

    Download full text from publisher

    File URL: https://www.rmci.ase.ro/no24vol5/08.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Veronica GROSU & Ioana ANDRIOAIA & Iulian DASCALU, 2022. "Analysis Of The Economic Performance And Sustainability Of Businesses Operating In Electricity Production And Distribution Industry," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(1), pages 96-104, February.
    2. Raluca ANDREEV & Mihaela TULVINSCHI & Anamaria-Geanina MACOVEI, 2022. "Analysis Of The Impact Of Social Performance On Financial Performance," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(2), pages 59-65, June.
    3. Marian Socoliuc & Cristina-Gabriela Cosmulese & Marius-Sorin Ciubotariu & Svetlana Mihaila & Iulia-Diana Arion & Veronica Grosu, 2020. "Sustainability Reporting as a Mixture of CSR and Sustainable Development. A Model for Micro-Enterprises within the Romanian Forestry Sector," Sustainability, MDPI, vol. 12(2), pages 1-34, January.
    4. Radu Ioan Petrariu & Marian Nastase & Gabriel Croitoru & Nicoleta Valentina Florea & Nicoleta Cristache & Mihaela Cristina Onica Ibinceanu, 2023. "Analysis of Responsible Energy Consumer s Behaviour in the Context of REPowerEU Plan," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 743-743, August.
    5. Nicoleta Cristache & Marian Nãstase & Radu Petrariu & Margareta Florescu, 2019. "Analysis of Congruency Effects of Corporate Responsibility Code Implementation on Corporate Sustainability in Bio-Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 536-536, August.
    6. Agustinus, Prasetyantoko & Rachmadi, Parmono, 2008. "Determinants of Corporate Performance of Listed Companies in Indonesia," MPRA Paper 6777, University Library of Munich, Germany.
    7. Amanj Mohamed Ahmed & Nabard Abdallah Sharif & Muhammad Nawzad Ali & István Hágen, 2023. "Effect of Firm Size on the Association between Capital Structure and Profitability," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    Full references (including those not matched with items on IDEAS)

    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. Laurentiu-Nicolae PRICOPE & Alina MECA & Monica Laura ZLATI, 2023. "Vulnerabilities of Smart Cities Development in a Context of Uncertainty at European Level," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 847-858, December.
    2. Grosu, Veronica & Cosmulese, Cristina Gabriela & Socoliuc, Marian & Ciubotariu, Marius-Sorin & Mihaila, Svetlana, 2023. "Testing accountants' perceptions of the digitization of the profession and profiling the future professional," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    3. Marc Gilbert Joseph Buchholzer, 2022. "Review of International Comparative Management Volume 23, Issue 1, March 2022 101 Value-ADDED Automation, a Solution for the Future of Work in Automotive Manufacturing in Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(1), pages 101-111, March.
    4. An-Pin Wei & Chi-Lu Peng & Hao-Chen Huang & Shang-Pao Yeh, 2020. "Effects of Corporate Social Responsibility on Firm Performance: Does Customer Satisfaction Matter?," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    5. Al Shahrani Saad M & Al Shahrani Saad M, 2016. "The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 2(7), pages 51-56, June.
    6. Tarik Hossain, 2020. "Determinants of Profitability: A Study on Manufacturing Companies Listed on the Dhaka Stock Exchange," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(12), pages 1496-1508, December.
    7. Nicoleta CRISTACHE & Irina Olimpia SUSANU & Andreea Valentina BUSILA & Ciprian MATIS & Oana PRICOPOAIA, 2022. "The Impact of Sensory Marketing on the Development of Organisations in the Fashion Industry," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 111-122.
    8. Julia Anamaria ?I?U, 2023. "Digital Leadership Competencies: A Systematic Literature Review," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(1), pages 69-77, March.
    9. Aura COLAN, 2022. "Analysis of the Degree of Implementation of Digitalization in the Educational System through the eQual Method," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 97-101.
    10. Ana NASTASE & Lauren?iu COROBAN & Nicolae VRANA, 2023. "Challenges for Change Management in SMEs," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 826-832, December.
    11. M. A. Lagesh & Maram Srikanth & Debashis Acharya, 2018. "Corporate Performance during Business Cycles: Evidence from Indian Manufacturing Firms," Global Business Review, International Management Institute, vol. 19(5), pages 1261-1274, October.
    12. Luis Otero-González & Pablo Durán-Santomil & Luis-Ignacio Rodríguez-Gil & Rubén Lado-Sestayo, 2021. "Does a Company’s Profitability Influence the Level of CSR Development?," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    13. Rendani Mavis Matakanye & Huibrecht Margaretha van der Poll & Binganidzo Muchara, 2021. "Do Companies in Different Industries Respond Differently to Stakeholders’ Pressures When Prioritising Environmental, Social and Governance Sustainability Performance?," Sustainability, MDPI, vol. 13(21), pages 1-22, October.
    14. Julia Cohen & Carina Marques & Joana Lameira & Maria José Sousa & Manuel Au-Yong-Oliveira, 2020. "The Interrelationship between Corporate Social Responsibility and Strategic Innovation In Aveiro-based Startups," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 11(3), pages 65-86, December.
    15. Cosmin MATIS, 2020. "A Study Regarding the Correlations that Exist between Types of Cultures in Banking Organizations and the Country of Origin of the Majority Capital, the Gender of the Employees, their Age, Level of Exp," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 49-60.
    16. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2022. "The Influence of Systematic Strategic Planning and Strategic Business Innovation on the Sustainable Performance of Manufacturing SMEs: The Case of Palestine," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    17. Maria LOGHIN & Loredana Gabriela DINULESCU & Madalina MONCEA, 2023. "Specific Elements of the Implementation of Sustainable Development Goals in the EU and Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 773-791, December.
    18. Radojko LUKIC, 2022. "Measurement and Analysis of the Dynamics of Financial Performance and Efficiency of Trade in Serbia Based on the DEA Super-Radial Model," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(5), pages 630-645, December.
    19. Maria Lanfredi & Rosa Coluzzi & Vito Imbrenda & Bogdana Nosova & Massimiliano Giacalone & Rosario Turco & Marcela Prokopovà & Luca Salvati, 2023. "In-between Environmental Sustainability and Economic Viability: An Analysis of the State, Regulations, and Future of Italian Forestry Sector," Land, MDPI, vol. 12(5), pages 1-21, May.
    20. Madalina Ioana MONCEA & Mihaela MINCIU & Razvan Catalin DOBREA & Loredana Gabriela DINULESCU, 2023. "Research Regarding the Financing of the Revitalization Process for Rural Space in the Context of Sustainable Challenges," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 80-86.

    More about this item

    Keywords

    performance; ESG; market capitalization; size company; EPS; Share prices;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    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:rom:rmcimn:v:24:y:2023:i:5:p:815-825. 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: Marian Nastase (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.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.