Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics (Apr 2012)

Foreign Owned Companies and Financial Performance. A Case Study on Companies Listed on Bucharest Stock Exchange

  • Iuliana Oana MIHAI

Journal volume & issue
Vol. 1, no. 1
pp. 13 – 20

Abstract

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The main objective of this paper is to investigate the relation between the foreign ownership and firm performance. The study was conducted for the companies listed on Bucharest Stock Exchange, in the first, second and third categories. The financial companies and the credit institutions were excluded from the sample. The final sample included 63 companies. Return on Assets and Return on Equity are used for measuring the financial and economic performance of the firm. The foreign ownership is measured by the percentage of shares held by foreign investors. Econometric tools like linear regression analysis are used for analysis. The results of the study suggest that there is no significant link between firm performance and the existence of foreign capital.

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