On Financial Performance and Capital Structure of Romanian Companies

Viorela Ligia Vaidean
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Viorela Ligia Vaidean: ”Babes-Bolyai” University

Finante - provocarile viitorului (Finance - Challenges of the Future), 2014, vol. 1, issue 16, 151-157

Abstract: The purpose of this paper is to validate the theoretical background of the specialized economic literature on financial performance of companies as a function of different capital structure determinants on the Romanian market. As such, the capital structure considered indicators are the short term, long term and total debt ratios, further adding the logarithm of Sales as a proxy for the size of a company. For performance, the paper used the companies’ return on assets and net profit margin, significant results being obtained for the former only. Data were processed with the help of the IBM SPSS 20 software, using the linear regression technique. Basically, the sample points towards a negative weak correlation between total debt and return on assets.

Keywords: profitability; performance; rate of return; capital structure; linear regression modeling (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:aio:fpvfcf:v:1:y:2014:i:16:p:151-157

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