STUDY ON THE INFLUENCE OF THE FINANCIAL INDICATORS ON FINANCIAL BALANCE OF THE ECONOMIC ENTITY

PAVEL Ruxandra-Maria, Lucian Blaga University of Sibiu

Abstract:
The present study highlights the influence of the factors with significant impact on the financial balance (expressed through the working capital fund) in a number of 26 companies from the hospitality and the restaurants industry listed on the Bucharest Stock Exchange during the period 2007-2017, respectively: indebtedness , liquidity, profitability and operational factor. The results have shown that an increase in liquidity and profitability will result in an increase in the working capital, which will lead to the financial balance being maintained and maintained. On the other hand, an increase in the indebtedness and the duration of debt recovery will entail a reduction in the working capital, with a negative effect on the balance of financial.

Keywords: financial balance, working capital, multivariate regression, operational factor, financial leverage

JEL Classification: G32, C21

Volume: 71, Issue: 4

Pages: 104 - 116

Publication date: December, 2019

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/71408pavel.pdf

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