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Financial Crisis Impact On The Development Of The Romanian Capital Market



    () (Academy of Economics Bucharest)

  • Sorin-Iulian CIOACA

    () (Academy of Economics Bucharest)


    () (Academy of Economics Bucharest)

  • Ana-Maria BURCA

    () (Academy of Economics Bucharest)


The recent years have been characterized by important challenges in all areas of the society, mainly in the financial one. The financial markets crisis had a high impact on the stock exchange, affecting mostly the emergent markets, such as Romania, which experienced a severe consequences of the crisis. The main spot market of the stock exchanges was characterized by high volatility in the years following the subrime crisis, especially in 2008. These effects lead to a massive fall in the market value of most of the listed companies, at the same time with the decrease of the market cap and the average of the traded value. The decrease of the traded volume was not only generated by the foreign investors` reluctance to invest in the Romanian capital market, but also by the severe decrease of the prices of the listed companies. The financial crisis altered the consolidation of the internal capital market, strongly emphasising the leading factors that generated the severe contraction of this domain (especially, the cvasidependence on the foreign capitals and the lack of some strong local institutionals, given by – for example - the very late inception of the public pension sector reform). In the Romanian capital market, the subprime crisis altered most of the listed companies and resulted in extreme volatility, that lead to the ìncrease of the investors` risk aversion. Therefore, it is necessary to identify remedies for the present state of the capital market, that will allow the stock exchange to regain its role as an alternative channel for financing the companies.

Suggested Citation

  • Dan ARMEANU & Sorin-Iulian CIOACA & Ana TUDORACHE & Ana-Maria BURCA, 2012. "Financial Crisis Impact On The Development Of The Romanian Capital Market," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 1(26), pages 54-62, March.
  • Handle: RePEc:ath:journl:tome:26:v:1:y:2012:i:26:p:54-62

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    Cited by:

    1. Daniel Stefan ARMEANU & Adrian ENCIU & Carmen OBREJA & Sorin-Iulian CIOACÃ, 2016. "The Financial Crisis’ Impact on the Central and Eastern Europe Capital Markets," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(5), pages 420-431, December.

    More about this item


    financial crisis; capital market; market cap; traded volume; foreign investment;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies


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