Exploratory study of the analysis of the performance of stock exchange quoted companies, per activity fields

Abstract

In order to support strategic decisions, current and potential investors as well as managers need pertinent information that would reflect a faithful image concerning the financial position and performance of the companies. In their analysis and evaluation, besides financial factors, it is necessary to consider non-financial factors as well. Therefore, the specificity of the activity fields of the companies influence a series of financial indicators, determining different results concerning their performance. The present study aims to analyze the financial performance according to the activity field (agriculture, industry, commerce, and services), quantified by criteria based on traditional financial indicators, respectively stock exchange criteria for the acknowledgement of the global performance by the participants to the capital market. The study also aims identify a performance profile of the companies, according to their activity field and to the performance criteria considered. The target population is represented by companies quoted in the Bucharest Stock Exchange (BSE). From it, a random sample was extracted of 100 quoted companies, activating in the field of agriculture, industry, commerce, and services, for the fiscal year 2011. The results of the research were obtained after applying the univariate analysis and the multiple correspondences factor analysis, using the SPSS 19.0 statistic software. The results show the existence of differences in what concerns the indicators of financial performance on activity fields. The characteristics of each activity field, as well as the risks corresponding to each of them, influence the traditional indicators, as well as the stock exchange indicators. Each field is characterized by certain performance indicators. Based on the results obtained through the performance profile of the companies according to their activity field, actual and potential investors, as well as the other categories of stakeholders, can make decisions without a complete fundamental analysis. Although the results are a useful means for the stakeholders, they must also take into account the limitations of the current study, which are determined by the degree of representativeness of the sample, respectively by the small number of companies in each of the four activity fields, quoted on the Romanian capital market. As a result of these limitations, future research directions concern the increase of the number of studied companies, by extending the analyzed period and taking into consideration other performance criteria as well, such as those focused on value creation, or related to the cash flow.