STUDY ON APPRECIATION OF FINANCIAL EQUILIBRIUM IN THE COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE

BALTES Nicolae, Lucian Blaga University of Sibiu

PAVEL Ruxandra Maria , Lucian Blaga University of Sibiu

Abstract:
This paper presents the development of two important indicators in assessing the financial equilibrium of an economic entity, namely the working capital and financial leverage for 24 companies listed and traded on the Bucharest Stock Exchange, that belong to industry hotels and restaurants, during a period of 8 financial years (2007-2014). Starting from 2011 the economic and financial crisis had a severe impact on the companies included in the research, the financial health been altered to the extent that half of the companies registered a state of financial disequilibrium. By using simple linear regression model, it was concluded that the change in value of financial leverage has a strong influence of the opposite size on the working capital.

Keywords: financial equilibrium, working capital, financial leverage, linear regression, permanent capital

JEL Classification: G320, C260

Volume: 68, Issue: 4

Pages: 33 - 43

Publication date: December, 2016

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/68403baltes&pavel.pdf

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