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Foreign Owned Companies and Financial Performance. A Case Study on Companies Listed on Bucharest Stock Exchange

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  • Iuliana Oana MIHAI

    (Department of Business Administration, Faculty of Economics and Business Administration, Dunarea de Jos University of Galati, Romania)

Abstract

The main objective of this paper is to investigate the relation between the foreign ownership and firm performance. The study was conducted for the companies listed on Bucharest Stock Exchange, in the first, second and third categories. The financial companies and the credit institutions were excluded from the sample. The final sample included 63 companies. Return on Assets and Return on Equity are used for measuring the financial and economic performance of the firm. The foreign ownership is measured by the percentage of shares held by foreign investors. Econometric tools like linear regression analysis are used for analysis. The results of the study suggest that there is no significant link between firm performance and the existence of foreign capital.

Suggested Citation

  • Iuliana Oana MIHAI, 2012. "Foreign Owned Companies and Financial Performance. A Case Study on Companies Listed on Bucharest Stock Exchange," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 13-20.
  • Handle: RePEc:ddj:fseeai:y:2012:i:1:p:13-20
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    References listed on IDEAS

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    Cited by:

    1. , Aisdl, 2020. "The Roles of Foreign Ownership and Growth Opportunity amid the Trade War: Evidence from an Emerging Country," OSF Preprints 7w2m9, Center for Open Science.
    2. Mai, Nhat Chi, 2020. "The Roles of Foreign Ownership and Growth Opportunity amid the Trade War: Evidence from an Emerging Country," OSF Preprints 49cdt, Center for Open Science.
    3. Duc Nam Phung & Anil V. Mishra, 2016. "Ownership Structure and Firm Performance: Evidence from Vietnamese Listed Firms," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 63-98, March.
    4. 子, 鬼谷, 2020. "The Roles of Foreign Ownership and Growth Opportunity amid the Trade War: Evidence from an Emerging Country," OSF Preprints cr7xp, Center for Open Science.
    5. Delane Naidu & Ailie Charteris & Peter Moores‐Pitt, 2022. "The impact of foreign ownership on the performance of Johannesburg Stock Exchange‐listed firms: A blessing or a curse?," South African Journal of Economics, Economic Society of South Africa, vol. 90(1), pages 75-92, March.

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    More about this item

    Keywords

    Foreign ownership; Performance; Domestic ownership;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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