THE CORRELATION WORKING CAPITAL - SELF-FINANCING CAPACITY AT THE COMPANIES FROM HOTEL AND RESTAURANT INDUSTRY LISTED ON BUCHAREST STOCK EXCHANGE

PAVEL Ruxandra Maria , Lucian Blaga University of Sibiu

CIUHUREANU Alina Teodora , "Nicolae Bălcescu" Land Forces Academy

Abstract:
The present paper determines the influence of the changes in working capital on the self-financing capacity, using the panel type simple linear regression model. The research sample consists of 22 companies from hotel and restaurant industry, listed on Bucharest Stock Exchange, the period 2007-2015. The decision between the random effects model and the fixed effects model was based on the Hausman test application and the criteria associated information of the two models. The hypothesis was confirmed so there is a direct relation between working capital and self-financing capacity, meaning that one unit change in working capital leads to a change of 1,505 units in the self-financing capacity.

Keywords: working capital, self-financing capacity, data panel, Pearson correlation, Hausman test

JEL Classification: G32, C12

Volume: 69, Issue: 2

Pages: 127 - 137

Publication date: August, 2017

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/69211pavel&ciuhureanu.pdf

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