The Influence of Income Changes on the Financial Performance of the Firm

Horga Maria-Gabriela (), Ionescu Alexandra () and Nancu Dorinela ()
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Horga Maria-Gabriela: “Ovidius” University of Constanta
Ionescu Alexandra: “Ovidius” University of Constanta
Nancu Dorinela: “Ovidius” University of Constanta

Ovidius University Annals, Economic Sciences Series, 2013, vol. XIII, issue 1, 504-508

Abstract: In financial terms, firm performance is an overall result of the firm's activities. It consists of the profits generated by sales of the firm. Obviously, consumers play an important role in this sense, as they are responsible for creating demand for goods or services. They base demand on their incomes. The present study aims to establish the relationship between firm financial performance and consumers' incomes. The research is based on an empirical study on Romanian companies within manufacturing sector. For the purpose of our study, a regression model was used. As a result, we constructed a linear model of regression outlining the impact of income changes over firm financial performance.

Keywords: consumer income; consumer behaviour; financial performance; regression model (search for similar items in EconPapers)
JEL-codes: C50 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:1:p:504-508

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