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Study on the relationship between financial performance and leverage: empirical evidence on Bucharest Stock Exchange

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  • Florinita DUCA

    (Universitatea ARTIFEX, Bucuresti)

Abstract

This paper seek to investigate the relationship between financial performance of the companies and the companies debt to equity. The empirical study was conducted on a sample of one hundred companies listed on the Bucharest Stock Exchange. Financial performance of firms is analyzed by return on equity. The dataset is obtained from annual reports for 2010. The results indicate a positive and significant relation between return on equity and debt to equity.

Suggested Citation

  • Florinita DUCA, 2016. "Study on the relationship between financial performance and leverage: empirical evidence on Bucharest Stock Exchange," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(6), pages 45-48, june.
    • Handle: RePEc:rsr:supplm:v:64:y:2016:i:6:p:45-48
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