The implications of financial performance on stock exchange indicators of listed companies: empirical evidence for the Romanian capital market

Stefan, Iulia-Oana

doi:10.20869/auditf/2016/140/875

Cited by 3 publications

(1 citation statement)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Between the management of the company and other users of information, an asymmetry is formed due to different interests, which can be minimized [25,26] through a chain of actions such as cause and effect that originate in the decision of some managers to provide more information when they consider the company they are conducting is undervalued [27].…”

Section: Literature Reviewmentioning

confidence: 99%

Testing the Correlations between Corporate Giving, Performance and Company Value

Haţegan

Curea-Pitorac

2017

Sustainability

View full text Add to dashboard Cite

The paper seeks to identify the relationship between the charitable contributions, performance, and market value of Romanian listed companies. To achieve the objective, a panel data analysis was conducted on a group of companies listed at Bucharest Stock Exchange in the period 2011 to 2016, which registered profit for the entire period. The empirical analysis points out, using a logistic regression, which financial and non-financial indicators contribute to the decisions of the companies to make the charitable contributions. It also tests the impact of those indicators and corporate giving activities like Corporate Social Responsibility (CSR) activities on company value, represented by Tobin's Q Ratio and on company performance, expressed by Return on Equity (ROE). The results show that there is a positive correlation between the charitable contributions, performance, and market value of the Romanian listed companies.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Testing the Correlations between Corporate Giving, Performance and Company Value

Haţegan

Curea-Pitorac

2017

Sustainability

View full text Add to dashboard Cite

show abstract

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

Popa

Bogdan

Sabău-Popa

et al. 2022

View full text Add to dashboard Cite

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.

show abstract

The Influence of Corporate Governance Systems on a Company’s Market Value

et al. 2020

View full text Add to dashboard Cite

Recent world events have refocused interest on the link between the existence of corporate governance and an entity’s effectiveness. The aim of this study was to identify the influence of the corporate governance system of an entity in order to measure its effects on market value. To achieve quality corporate governance and to increase an audit committee’s degree of effectiveness, one must take into consideration four core elements: members’ qualifications, authority, the resources necessary to develop the activity, and attention during the development of the activity. Our research methodology included a combination of qualitative analyses on theoretical aspects and a quantitative approach based on multiple regression and the estimation method. The main results showed that there is a solid link between strong corporate governance systems and effective audit committees, although we cannot state that the inclusion of an audit committee represents the key to success for a business. When studying the connection between audit committees and an entity’s market value, we found that this connection can lead to alleviating the problem of allocating power (principal–agent theory). We also found that the contribution of audit committees in corporate governance is to assess both the quality of financial reports and their approval and that creating an audit committee can have beneficial effects that can eventually lead to the consolidation of a company’s corporate governance.

show abstract

The implications of financial performance on stock exchange indicators of listed companies: empirical evidence for the Romanian capital market

Abstract: Abstract

Cited by 3 publications

References 20 publications

Testing the Correlations between Corporate Giving, Performance and Company Value

Testing the Correlations between Corporate Giving, Performance and Company Value

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

The Influence of Corporate Governance Systems on a Company’s Market Value

Contact Info

Product

Resources

About