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Empirical Research Towards the Factors Influencing Corporate Financial Performance on the Bucharest Stock Exchange

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  • Vintilă Georgeta
  • Nenu Elena Alexandra
  • Gherghina Ştefan Cristian

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

This study aims to investigate the potential factors of influence on corporate financial performance, by using the panel data regression analysis. The research was employed for a sample consisting of 40 companies listed on the Bucharest Stock Exchange, over the period 2010-2012. Corporate financial performance considered as the dependent variable was proxied through return on assets, return on equity, and Tobin’s Q ratio. There were selected the following factors that could influence corporate financial performance: capital structure, firm size, and corporate social responsibility involvement. Likewise, several control variables have been introduced: structure of the ownership and institutional investors. The results show a strong negative relationship between corporate financial performance and debt to equity ratio. Also, there has been revealed a positive influence of the company size on performance, although weak. Furthermore, the relationship between financial performance and social performance has been statistically validated, both using accounting and market ratios.

Suggested Citation

  • Vintilă Georgeta & Nenu Elena Alexandra & Gherghina Ştefan Cristian, 2014. "Empirical Research Towards the Factors Influencing Corporate Financial Performance on the Bucharest Stock Exchange," Scientific Annals of Economics and Business, Sciendo, vol. 61(2), pages 219-233, December.
    • Handle: RePEc:vrs:aicuec:v:61:y:2014:i:2:p:219-233:n:1
    DOI: 10.2478/aicue-2014-0009
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    References listed on IDEAS

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    Cited by:

    1. Nour Lakiss, 2021. "The impact of social responsibility on financial performance: evidence from Romanian companies," Journal of Financial Studies, Institute of Financial Studies, vol. 10(6), pages 58-76, May.
    2. Sorin Gabriel ANTON, 2016. "The Impact Of Leverage On Firm Growth. Empirical Evidence From Romanian Listed Firms," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 147-158, December.

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