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Studia Universitatis „Vasile Goldis” Arad – Economics Series

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Study on the financial performance of companies operating in the pharmaceutical industry in romania

Nicolae Baltes / Georgiana Daniela Minculete (Piko)
Published Online: 2016-03-17 | DOI: https://doi.org/10.1515/sues-2016-0005


The study aims at determining the financial performance of companies in the pharmaceutical industry between 2009 and 2014 by means of the indicator of the financial return rate, using multiple linear regressions as research method. By analysing the evolution of the share of companies in the pharmaceutical industry based on the trend of the financial rate of return, we can estimate that the number of entities that resort to supporting the financial activities from loans and liabilities is growing in the period under analysis. This is due mainly to the liquidity crisis faced by entities, as a result of the high recovery duration of debts. Also, using the multiple linear regression we can highlight that, the financial return of pharmaceutical companies is positively influenced by their economic profitability, by the equity multiplier and by inflation, and negatively, by the net profit margin.

Keywords: financial performance; financial return; economic profitability; the method of multiple linear regression; equity multiplier; net profit margin

JEL classification:: G19; G39

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About the article

Received: 2015-11-01

Accepted: 2016-01-01

Published Online: 2016-03-17

Published in Print: 2016-03-01

Citation Information: Studia Universitatis „Vasile Goldis” Arad – Economics Series, Volume 26, Issue 1, Pages 58–68, ISSN (Online) 1584-2339, DOI: https://doi.org/10.1515/sues-2016-0005.

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© 2016 Nicolae Baltes et al., published by De Gruyter Open. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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