THE FINANCIAL PERFORMANCE – RISK CORRELATION OF COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE

Andreea Claudia Chiurtu
Additional contact information
Andreea Claudia Chiurtu: University of Craiova Faculty of Economics and Business Administration Craiova, Romania

Annals of University of Craiova - Economic Sciences Series, 2020, vol. 1, issue 48, 47-62

Abstract: This present paper analyzes the correlation between the financial performance and the risks based on a sample of 40 companies listed on Bucharest Stock Exchange. The period subjected to observation was in amount of three years (2016-2018). The performance is quantified on the basis of accounting indicators: return on assets (ROA) and return on equity (ROE). Also the financial risk is determined through financial leverage (level of indebtedness). The aim of this paper work is to determine the financial risk in order to obtain financial performance, as well as testing the relation between the financial performance and risks. The statistic analyze of data is based on statistic software SPPS, and also on Pearson coefficient. As a result, the statistic correlation between the rate of return equity (ROE) as a dependent variable and independent variables: return of assets (ROA), the rate of interest (IR), financial leverage (FR), is verified. Therefore, these analyses confirm that there are correlations between independent variables and the rate of financial profitability of the rate of return on equity.

Keywords: performance; rentability; risk; financial leverage; leverage effect. (search for similar items in EconPapers)
JEL-codes: G30 M41 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/AUCSSE/0048v1-005.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:1:y:2020:i:48:p:47-62

Access Statistics for this article

Annals of University of Craiova - Economic Sciences Series is currently edited by Sorinel Domnisoru

More articles in Annals of University of Craiova - Economic Sciences Series from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Anca Bandoi ( this e-mail address is bad, please contact ).