Lector univ. drd. Floriniţa DUCA
Universitatea ARTIFEX, Bucureşti
Abstract
This paper seek to investigate the relationship between financial performance of the companies and the companies debt to equity. The empirical study was conducted on a sample of one hundred companies listed on the Bucharest Stock Exchange. Financial performance of firms is analyzed by return on equity. The dataset is obtained from annual reports for 2010. The results indicate a positive and significant relation between return on equity and debt to equity.
Key word: Return on equity, debt-to-equity ratio, size firm, corporate governance
