Quantitative analysis on the determinants of the financial performance of the enterprise.Empirical evidence on the case of companies listed on national and international stock exchanges Cover Image

Analiză cantitativă privind factorii determinanţi ai performanţelor financiare ale întreprinderii.Evidenţe empirice pe cazul companiilor listate la bursele de valori naţionale şi internaţionale
Quantitative analysis on the determinants of the financial performance of the enterprise.Empirical evidence on the case of companies listed on national and international stock exchanges

Author(s): Andrada-Mihaela Şurubaru
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: EDITURA ASE
Keywords: financial performance; panel data; regression models with fixed and random effects; Hausman test; multicollinearity;

Summary/Abstract: The paper purpose is the empirical analysis of the determinants of the financial performance of the enterprise. Thus, the rates of return ROA and ROE were used to quantify the performance of the enterprise. As explanatory variables, were considered total assets, fixed assets, current assets, total liabilities, short-term and long-term liabilities, equity, share of fixed assets in total assets, share of current assets in total assets, degree of indebtedness, current liquidity rate, solvency ratio, financial stability rate, global autonomy rate, ratio between total debt and equity, ratio between total assets and equity. Thus, based on a sample of 50 companies listed on the Stock Exchanges of Romania, Germany, Great Britain, United States of America and Hong Kong, for the period 2012-2017, totaling 296 statistical observations, regression models were estimated with fixed effects and random effects panel data. The results reveals the fact that total assets and equity significantly influence ROA, while the degree of indebtedness, the ratio of assets / equity and short-term debt shows a negative impact. In the case of ROE, the factors with a positive, statistically significant influence are represented by equity, financial stability rate, long-term debt, global autonomy rate, total debt and total assets, while the variables that show a negative impact are represented by total assets / equity ratio and degree of indebtedness.

  • Issue Year: 8/2019
  • Issue No: 8
  • Page Range: 669-687
  • Page Count: 19
  • Language: Romanian