Analyzing Financial Health of the SMES Listed in the AERO Market of Bucharest Stock Exchange Using Principal Component Analysis

Sabău-Popa, Claudia Diana; Simuț, Ramona; Laurenţiu, Droj; Corneliu, Bente

doi:10.3390/su12093726

Cited by 9 publications

(7 citation statements)

References 15 publications

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“…As farmers cannot control the price of milk and meat, it is essential to manage the variables under their control, as the economic outcome depends on the management of production costs and economies of scale [30]. Moreover, farmers' financial sustainability has a direct and significant influence on the development and growth of the economy where they are located [31]. Farmers take social and environmental issues seriously when they are viable and economically sustainable [32].…”

Section: Introductionmentioning

confidence: 99%

Economic and Financial Sustainability Dependency on Subsidies: The Case of Goat Farms in Greece

et al. 2021

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Goat farming is an important production sector not only for Greece, but also for other Mediterranean countries, as it contributes to the family economy in rural areas. Despite the importance of goat farming, this sector has experienced economic difficulties due to poor management and increased production costs. The aim of our research is to determine goat farm profitability by surveying goat farmers for revenues, variable costs, and fixed costs of their farms. With the use of Principal Component Analysis, all economic factors contributing to overall production costs are examined, as well as their specific impacts on cost formulation. According to our results, goat farms in Greece are not profitable and they cannot survive without government subsidies. Farm economics and agricultural policies could be leveraged to improve community and environmental outcomes in order for farms to be economically and financially sustainable.

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Section: Introductionmentioning

confidence: 99%

Economic and Financial Sustainability Dependency on Subsidies: The Case of Goat Farms in Greece

et al. 2021

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“…The average duration of inventory turnover reflects the number of days required for the renewal of stocks. It is an indicator of influence for the operating cash flow because it takes into account all types of stocks [25].…”

Section: Methodsmentioning

confidence: 99%

Study on Companies from the Energy Sector from the Perspective of Performance through the Operating Cash Flow

et al. 2021

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In this paper we analyzed the link between companies’ performance, in terms of cash and income, and the labor productivity or management rates, in case of the companies from the energy sector listed on the Bucharest Stock Exchange. We focused on the energy sector because of the impact that its expansion has on the evolution of economies around the world and because of its dynamics in the sense of gradually shifting to the use of energy from renewable sources. We have used panel regression models to analyze the operating cash flow and the profitability rates and the determination of a causal or dependency relationship with labor productivity or management rates. The results of this study show a significant negative correlation between operating cash flows and the average duration of stock rotation, and no correlation between productivity and the operating cash flow. Instead, the average duration of stock turnover does not at all influence the profitability rates, and productivity is always significant for the return on assets, ie forthe return on equitywith a positive coefficient, as expected. The gap between the average duration of payment of suppliers and the average duration of receivables does not significantly influence neither the cash flow nor the rates of return.

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Section: Introductionmentioning

confidence: 99%

“…Previous studies conducted on Romanian companies listed on the Bucharest Stock Exchange (BSE) (Dospinescu and Dospinescu, 2018, 2019) or on SMEs (Sabău-Popa et al. , 2020) have focused mainly on investigating FP using composite indicators, while others have been concerned with examining the relevance of non-financial information in the sustainable reporting of Romanian companies (Man and Bogeanu-Popa, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Modern reporting is no longer limited to classical financial information but also extends to non-financial information. Thus, the disclosure degree of environmental, social, economic and governance (ESEG) information is a frequently investigated topic in correlation with performance indicators, as other studies revealed that financial performance (FP) is a significant indicator of the financial health of companies (S ¸tefan, 2016;Sab au-Popa et al, 2020) and that it is influenced by the information disclosure policy. The use of integrated reporting (IR) can lead to increased profitability of companies (Marjanova et al, 2017), while the analysis of profitability indicators and other financial indicators in correlation with nonfinancial variables may facilitate the ranking of companies.…”

Section: Introductionmentioning

confidence: 99%

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Performance mapping in two-step cluster analysis through ESEG disclosures and EPS

Popa

Bogdan

Sabău-Popa

et al. 2022

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PurposeThe purpose of this work is twofold. First, looks to identify the main homogenous groups of companies after environmental, social, economic and governance (ESEG) disclosures, non-financial statement and earnings per share (EPS), and second investigates the connection between variables.Design/methodology/approachUsing financial and non-financial information from annual reports of private listed companies, the authors performed two-step cluster analysis (TSCA) in the first stage of the research, followed by parametric, nonparametric correlation analysis, as well as regression analysis based on panel data, in the second stage.FindingsResults of TSCA revealed a cluster of companies with good financial and non-financial outcomes and a cluster of companies with poor performance. The performance dynamics showed a slight improvement during the period for few companies and composition analysis of clusters by industries through Kruskal–Wallis test highlighted differences between clusters, only for 2017. The main findings confirm a direct, although weak in intensity but statistically significant correlation between ESEG disclosure index, its sustainability component and financial performance (FP), valid for the entire period. Also, the results showed a direct link of low intensity to average, but statistically significant between the non-financial statement and EPS, valid only for 2017 and 2018.Research limitations/implicationsThe results indicate mixed findings which invites further in-depth research. Limits of the study can be found in selected indicators and the short period of time analyzed. However, the practical implications are worth considering from the perspective of finding new managerial tools that can better shape the relationship between ESEG disclosures and FP.Practical implicationsESEG Dindx can be an instrument for managers that can optimize the link between the FP of companies and its sustainable development.Social implicationsESEG Dindx measures the disclosure degree of ESEG information by the companies listed on Bucharest Stock Exchange (BSE). The main findings of the work confirm a direct, although weak in intensity but statistically significant correlation between ESEG disclosure index, its sustainability component and FP, valid for the entire period.Originality/valueThis study adds value to the existing literature by the proposed research framework, design of ESEG Dindx and the way correlations between variables were investigated.

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Analyzing Financial Health of the SMES Listed in the AERO Market of Bucharest Stock Exchange Using Principal Component Analysis

Cited by 9 publications

References 15 publications

Economic and Financial Sustainability Dependency on Subsidies: The Case of Goat Farms in Greece

Economic and Financial Sustainability Dependency on Subsidies: The Case of Goat Farms in Greece

Study on Companies from the Energy Sector from the Perspective of Performance through the Operating Cash Flow

Performance mapping in two-step cluster analysis through ESEG disclosures and EPS

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