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Forecasting Firm Performance: Evidence from Romanian Furniture Firms

Author

Listed:
  • Hada Teodor

    (Bogdan Voda University, Cluj-Napoca, Romania)

  • Bărbuţă-Mişu Nicoleta

    (Faculty of Economics and Business Administration, Dunărea de Jos University of Galati, Address: 47 Domneasca Street, Zip Code 800008, Galaţi, Romania)

  • Mărginean Radu

    (1 Decembrie 1918, University of Alba Iulia, Alba Iulia, Romania)

Abstract

The aim at this paper is to propose an econometric model for analyzing economic performance in the furniture industry in Romania, conducted on a sample of 293 firms. The net profit was considered as a dependent variable and the turnover, expenses with employees, value added, current liabilities and inventories as independent variables. Five hypotheses were proposed, tested and validated by using multiple linear regression. The most significant results show that there is a positive significant relationship between net profit and value added and a negative significant relationship between net profit and expenses with employees. Since the model has been validated statistically, we consider that it can provide useful predictions in terms of economic performance analysis in the furniture industry.

Suggested Citation

  • Hada Teodor & Bărbuţă-Mişu Nicoleta & Mărginean Radu, 2018. "Forecasting Firm Performance: Evidence from Romanian Furniture Firms," Ekonomika (Economics), Sciendo, vol. 97(1), pages 87-104, January.
  • Handle: RePEc:vrs:ekonom:v:97:y:2018:i:1:p:87-104:n:7
    DOI: 10.15388/ekon.2018.1.11781
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    References listed on IDEAS

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