Exploratory Study on the Influence of Non Financial Factors on the Stock Performance of Quoted Romanian Companies
Author:
Assistant Mihai CARP, Ph. D.
JEL:
G34; L25; M14; M41
DOI:
Keywords:
non-financial information, corporate governance, shareholders` structure, stock exchange performance, value relevance of accounting data
Abstract:
Required for a more detailed support of the decisions concerning the availability of owned capital, non-financial data come to complete the information scope of the financial statements that companies publish, contributing at the same time to diminishing the degree of uncertainty associated with the investment process.\r\nThis paper analyses the influence of non-financial factors (the shareholders` structure, the type of control used, the application of the corporate governance principles, the company size) on the stock performance specific to quoted Romanian companies. Using a sample made up of 126 economic entities quoted at the Bucharest Stock Exchange, this study analyses the researched field from two perspectives. Association relations are used to identify a series of profiles concerning the evolution of the value of companies, as an expression of stock performance, in correlation with the mentioned qualitative factors. At the same time, the authors estimate the impact of the qualitative variables on the value relevance of the accounting data, as a premise for the indirect evaluation of the efficiency of the organisational activity by the investors. The results identify a significant association between the stock performance and the existence of a corporate governance system within large companies, in the context of control being applied by the trust funds, trading companies, and the state. Small companies, jointly controlled by minority shareholders or owned by individuals, respectively trading companies, generally notice a drop in their market value. The present approach implied using the following methods: the multiple correspondences factor analysis, the correlation analysis, the multiple regression analysis, and the multiple regression analysis with alternative variables (Ancova). The data was processed using the SPSS.19 statistical software.\r\n\r\n\r\n\r\n\r\n\r\n