<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></abstract>

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.

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

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

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

Data publikacji: 17 mar 2016

Zakres stron: 58 - 68

Otrzymano: 01 lis 2015

Przyjęty: 01 sty 2016

DOI: https://doi.org/10.1515/sues-2016-0005

Słowa kluczowe
financial performance, financial return, economic profitability, the method of multiple linear regression, equity multiplier, net profit margin

© 2016 Nicolae Baltes et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Data publikacji: 17 mar 2016

Zakres stron: 58 - 68

Otrzymano: 01 lis 2015

Przyjęty: 01 sty 2016

DOI: https://doi.org/10.1515/sues-2016-0005

Słowa kluczowefinancial performance, financial return, economic profitability, the method of multiple linear regression, equity multiplier, net profit margin

© 2016 Nicolae Baltes et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
financial performance, financial return, economic profitability, the method of multiple linear regression, equity multiplier, net profit margin