An Econometric Model of Financial Companies from Romanian Stock Exchange

Abstract:

Companies with a financial profile play a very important role in modern society, being a link between various fields of activity. In this article, we aim to identify an econometric model based on multiple linear regression, the goal being to detect a clear relationship established between the profit rate and other three relevant financial parameters. The econometric model was made for the shares included in the BET-FI index of the Romanian Stock Exchange. The regression model we have discovered a stable relationship (α = 0.05) and a strong correlation between the proposed composite financial indicators (that include 11 other basic indicators) and the rate of profit.