Some Issues on the Decisions Related to Companies’ Performance Taken Using Econometric Models
Author:
Univ. Lecturer Mirela GANEA, Ph. D.; Univ. Assistant Nicoleta FLOREA, Ph. D.
JEL:
B16, C01,C58
DOI:
Keywords:
economic and financial performance, econometric modeling, decision making
Abstract:
The continuous change of the world economy trends, doubled by the particularities and difficulties specific to crisis times, strengthen the necessity for knowing both the real status of performance of an economic entity, as well as the opportunities and threats lurking in the shadows. In order to be successful in a very dynamic and complex environment, the managerial process of the economic entity must be fostered through reliable and efficient instruments, in accordance with the present valences of data processing technique and technology – instruments capable of offering in time correct and complete information regarding the evolution of phenomena and processes within the firm. The econometric modeling is one of the techniques that offer such instruments.\r\nSubordinate to these beliefs, the authors expose and demonstrates in this article the usefulness of a multiple linear regression model that they have developed, tested and validated in a previous material, in terms of statistical and mathematical, for a statistical population of 123 Romanian industrial companies. The article presents multiple ways of practical use of this model: either in the form of graphic, table-as scoreboard, or as multiple regression equation, it allows the quantification of the influence of each of the 10 independent variables (key performance indicators) on the dependent variable (economic profitability), thus turning into a viable and effective tool for measuring, control and management of financial and economic performance in the Romanian companies.\r\n