A PROFITABILITY REGRESSION MODEL IN FINANCIAL COMMUNICATION OF ROMANIAN STOCK EXCHANGE’S COMPANIES

Authors

  • Nicoleta Dospinescu Alexandru Ioan Cuza University, Iasi
  • Octavian Dospinescu Alexandru Ioan Cuza University, Iasi, Romania

Keywords:

financial indicators, integrated communication, profit regression model, Romanian stock exchange profit model

Abstract

The rate of profit is one of the most important indicators for the stakeholders and shareholders of the companies in the modern economy. In the present article we clearly identified the relationship between the net profit margin and other three composite financial indicators for the companies that are included in BET Index, the most important index of the Romanian Stock Exchange. We identified the regression model that includes, with a significance level of 95%, the stockholder’s equity, long-term liabilities, provisions, deferred revenues over a year, total liabilities, working capital and current assets.

The regression model was validated by using many statistics: Multiple R, R Square, t test, F test and p-values. Finally, we obtained the complete valid regression model regarding the profitability of Romanian Stock Exchange’s companies.

Author Biographies

Nicoleta Dospinescu, Alexandru Ioan Cuza University, Iasi

Dept. of Management and Marketing

Octavian Dospinescu, Alexandru Ioan Cuza University, Iasi, Romania

Dept. of Business Information Systems

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Published

30.01.2019

Issue

Vol. 8 No. 1 (2019)

Section

Accounting, Finance, Statistics and Economic informatics

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