RETURN VERSUS RISK. EVIDENCE FROM ROMANIA

Daniel Cîrciumaru, Raluca Dracea, Anca Tanasie and Marian Siminica
Additional contact information
Daniel Cîrciumaru: University of Craiova Faculty of Economics and Business Administration
Raluca Dracea: University of Craiova Faculty of Economics and Business Administration
Anca Tanasie: University of Craiova Faculty of Economics and Business Administration

Annals of University of Craiova - Economic Sciences Series, 2015, vol. 1, issue 43, 7-28

Abstract: There should be a strong correlation between return and risk. Tools have been developed in order to assess both the return and risk. Yet, the analysis of risk-return correlation is not easy to perform, as the return usually regards the past performance of the business, while the risk regards the future. In order to answer these issues, a survey has been performed in this paper, on nine Romanian companies listed on Bucharest Stock Exchange. Three score functions have been used in order to assess the bankruptcy risk (Altman 1968, Conan and Holder, Anghel) and three ratios of return (return on sales, return on assets, return on equity). The period analyzed ranged from 2007 to 2013. The research allowed verifying the assumptions and highlighting the weaknesses of the tools used to evaluate the risk.

Keywords: bankruptcy risk; score function; return on sales; return on assets; return on equity (search for similar items in EconPapers)
JEL-codes: F32 G01 G33 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/AUCSSE/0043v1-001.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:2015:i:43:p:7-28

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 ).