STUDY OF THE FINANCIAL PERFORMANCE FOR ROMANIAN LISTED COMPANIES BENEFICIARY OF NON-REPAYABLE EUROPEAN FUNDS

Authors:
  • Iulian PANAIT, email: iulian.panait@gmail.com, Afiliation: Hyperion University, Faculty of Economic Sciences
  • Liviu UZLAU, email: liviu_uzlau@yahoo.com, Afiliation: Hyperion University, Faculty of Economic Sciences

Pages:
  • 285|295
Keywords: European structural and cohesion funds, financial indicators, corporate financial performance, management of European project implementation
Abstract:
Our study investigates the differences in financial performance during 2011 and the first 3 quarters of 2012 for 36 Romanian companies listed on Bucharest Stock Exchange, divided in two groups: 11 companies beneficiary of non-repayable structural and cohesion European funds and 25 other non-beneficiary companies. We found that, on average, the beneficiary companies showed better debt-to-equity ratios, larger profit margin, higher return on equity and turnover growth, but, in the same time, they witness a lower profit growth and liquidity ratio. We explain this behavior by the long term advantages and also by the short term management difficulties of implementing European funded investment projects.

CCRP Conference