FUNDAMENTING OF AN AGGREGATE INDICATOR FOR CLASSIFYING ENTERPRISES BASED ON THEIR FINANCIAL RESULTS

Dan Armeanu (), Georgeta Vintila, Oana Filipescu, Paula Lazar () and Maria Moscalu ()

Theoretical and Applied Economics, 2011, vol. 5(558)(supplement), issue 5(558)(supplement), 235-242

Abstract: Financial analysis presents o wide set of ratios that can be used for assessing and comparing the return and the risk of the enterprises but in order to realize a classification of them it is necessary to reduce the number of ratios. This condition is satisfied through the principal component analysis which allows the transition from a causative space with a great number of variables to an equivalent but significant smaller space. In this context, the purpose of the present paper is to build an aggregate indicator which is necessary for ranking enterprises based on their financial results.

Keywords: aggregate indicator; principal components; return, risk; classification. (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/suplimente/Conferinta%20FABBV%202010_engleza.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:agr:journl:v:5(558)(supplement):y:2011:i:5(558)(supplement):p:235-242

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().