DETERMINANTS OF PERFORMANCE DURING COVID-19 PANDEMIC: AN EMPIRICAL RESEARCH ON PHARMACEUTICAL COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE
Autor (i): Larissa Batrancea
JEL: G00; G32.
Cuvinte cheie: liquidity; return on assets; return on equity; profit margin; COVID-19
Abstract:
Recent studies report that the majority of industries have experienced drastic decreases in sales within the context of the coronavirus pandemic. Nevertheless, considering the high demand for medicine and medical equipment triggered by efforts of fighting the virus, companies in the pharmaceutical industry have managed to maintain a rather steady financial equilibrium, despite the fact that they have registered a mitigation in performance indicators. This empirical research has shown that all five pharmaceutical companies listed on the Bucharest Stock Exchange and included in the sample have reported slight decreases related to both performance indicators (i.e., return on assets, return on equity, profit margin) and financial equilibrium (i.e., current liquidity ratio, quick ratio, cash ratio) when comparing 2020 results with those reported in the period 2010–2019. The econometric analyses have revealed that the financial equilibrium indicators and the performance indicators are statistically linked, meaning that an improvement in the value of equilibrium indicators yields an increase in the performance of companies operating in the Romanian pharmaceutical industry.
Recent studies report that the majority of industries have experienced drastic decreases in sales within the context of the coronavirus pandemic. Nevertheless, considering the high demand for medicine and medical equipment triggered by efforts of fighting the virus, companies in the pharmaceutical industry have managed to maintain a rather steady financial equilibrium, despite the fact that they have registered a mitigation in performance indicators. This empirical research has shown that all five pharmaceutical companies listed on the Bucharest Stock Exchange and included in the sample have reported slight decreases related to both performance indicators (i.e., return on assets, return on equity, profit margin) and financial equilibrium (i.e., current liquidity ratio, quick ratio, cash ratio) when comparing 2020 results with those reported in the period 2010–2019. The econometric analyses have revealed that the financial equilibrium indicators and the performance indicators are statistically linked, meaning that an improvement in the value of equilibrium indicators yields an increase in the performance of companies operating in the Romanian pharmaceutical industry.
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