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Management Of The Working Capital And Firm Performance In The Romanian Pharmaceutical Sector

Author

Listed:
  • LAURA RAISA MILOS

    (University „Eftimie Murgu” of Resita, Faculty of Economic Sciences)

  • MARIUS CRISTIAN MILOS

    (University „Eftimie Murgu” of Resita, Faculty of Economic Sciences)

Abstract

The objective of the study is to reveal the connection between working capital and firm performance, in the case of some selected Romanian pharmaceutical companies, listed on Bucharest Stock Exchange. Regression analysis was performed in order to check our hypothesis. The main conclusion of our study is that there is a negative, but weak relationship between working capital and firm performance. In other words, the shorter the period between production and sale of products, the larger firm’s profitability.

Suggested Citation

  • Laura Raisa Milos & Marius Cristian Milos, 2014. "Management Of The Working Capital And Firm Performance In The Romanian Pharmaceutical Sector," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 125-130, December.
    • Handle: RePEc:cbu:jrnlec:y:2014:v:6:p:125-130
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    References listed on IDEAS

    as
    1. Carmen Corduneanu & Laura Raisa Milos, 2009. "A sectorial analysis of the financing practices of the Romanian companies listed on Bucharest stock exchange," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 71-80, November.
    2. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    3. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
    4. Pedro Juan García‐Teruel & Pedro Martínez‐Solano, 2007. "Effects of working capital management on SME profitability," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 3(2), pages 164-177, April.
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