WORKING CAPITAL AND CORPORATE STRATEGY PATTERNS IN WORKING CAPITAL OF ROMANIAN PHARMACEUTICAL COMPANIES QUOTED ON BUCHAREST STOCK EXCHANGE

Abstract

The competitive nature of the business environment requires firms to adjust their strategies and adopt good financial policies to sustain growth. Most firms have an important amount of cash invested in current assets, as well a substantial amounts of current liabilities as a source of financing. This paper therefore analyses the working capital structure and financing pattern of Romanian Pharmaceutical Companies quoted on Bucharest Stock Exchange. Structural differences in working capital and the financing pattern of the sample firms are analysed and the results showed significant structural changes over the 2009-2014 period. The research revealed a decrease in current asset investment in relation to sales and a decreasing trend in the short-term component of working capital financing; in particular equity funds of Romanian producers financed the major part of working capital.

Keywords

• working capital structure
• working capital financing
• corporate strategy
• liquidity ranks