Business performance in IT. A multivariate regression analysis

Abstract

For the analysis of the performance of IT companies in Romania we have opted for a linear regression model in which the dependent variable entitled Result, which can be either profit or loss, was explained through the influence of the following variables: Non-current assets, Current assets, Stocks, Debts under 1 year, Debts over 1 year, Net turnover, Personnel expenditure, Research and development/R&D expenditure, Innovation expenditure. An entire series of positive relationships between the variables chosen is noted as an expression of the presence of a development strategy based both on the growth of the company's turnover and its superior exploitation, and on growth via external sources. In addition to these aspects, the high level of personnel, R&D and innovation expenditure has a dynamic influence on the results of these companies due to the high added value obtained by the overqualified labor.

Keywords

• business performance
• multivariate regression
• it companies
• financial indicators
• productivity.