Empirical Research Study on the Determinants of Market Indicators for 41 Financial Institutions

Larissa M. Batrancea () and Alin Fetita
Additional contact information
Larissa M. Batrancea: Department of Business, Babes-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, Romania
Alin Fetita: Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania

JRFM, 2023, vol. 16, issue 2, 1-11

Abstract: Economic development must consider the evolution of the banking system in general, and the evolution of individual banks on capital markets in particular. As these financial institutions are catalysts for national economies and economic development, studying the main determinants of their market indicators is both timely and important. This research investigated the impact of various financial ratios on market indicators for a sample of 41 financial institutions during the period of Q4 2013–Q4 2021. The empirical results showed that market indicators were mainly influenced by ratios such as return on assets, total debt to assets ratio, and total debt to total capital. In light of these results, management teams in the banking system are called upon to monitor aspects related to bank revenue and bank performance with the purpose of obtaining solid market indicators and attracting potential stock market investors. Relevant policy implications regarding the market performance of listed financial institutions are also addressed.

Keywords: capital market; banking system; performance; financial system; financial institutions (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1911-8074/16/2/78/pdf (application/pdf)
https://www.mdpi.com/1911-8074/16/2/78/ (text/html)

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:gam:jjrfmx:v:16:y:2023:i:2:p:78-:d:1048975

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().