Study on Companies from the Energy Sector from the Perspective of Performance through the Operating Cash Flow

Claudia Diana Sabău-Popa,Ioan Gheorghe Țara,Luminița Rus,Dana Simona Gherai,Codruța Mare

doi:10.3390/en14123667

Claudia Diana Sabău-Popa, Ioan Gheorghe Țara + Show 3 more

Open Access

https://doi.org/10.3390/en14123667

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Journal: Energies	Publication Date: Jun 20, 2021
Citations: 3	License type: CC BY 4.0

Affiliation: University of Oradea, Babeș-Bolyai University

Abstract

In this paper we analyzed the link between companies’ performance, in terms of cash and income, and the labor productivity or management rates, in case of the companies from the energy sector listed on the Bucharest Stock Exchange. We focused on the energy sector because of the impact that its expansion has on the evolution of economies around the world and because of its dynamics in the sense of gradually shifting to the use of energy from renewable sources. We have used panel regression models to analyze the operating cash flow and the profitability rates and the determination of a causal or dependency relationship with labor productivity or management rates. The results of this study show a significant negative correlation between operating cash flows and the average duration of stock rotation, and no correlation between productivity and the operating cash flow. Instead, the average duration of stock turnover does not at all influence the profitability rates, and productivity is always significant for the return on assets, ie forthe return on equitywith a positive coefficient, as expected. The gap between the average duration of payment of suppliers and the average duration of receivables does not significantly influence neither the cash flow nor the rates of return.

Highlights

The purpose of setting up companies, regardless of the form of organization, is to make a profit within an organized framework by making expenses which generate revenue
We focused our attention on the companies from the Romanian energy sector listed on the Bucharest Stock Exchange, because they are large, profitable companies with high liquidity, which are preferred by Romanian and foreign investors, most of them being controlled by the Romanian state through its direct participations
The purpose of our research is to analyze the operating cash flow and profitability indicators and the determination of a causal or dependency relationship with labor productivity or managements rates in case of the companies from the energy sector listed on the Bucharest Stock Exchange

Summary

Introduction

The purpose of setting up companies, regardless of the form of organization, is to make a profit within an organized framework by making expenses which generate revenue. The purpose of our research is to analyze the operating cash flow and profitability indicators and the determination of a causal or dependency relationship with labor productivity or managements rates in case of the companies from the energy sector listed on the Bucharest Stock Exchange. In this respect, we issue two hypotheses: Hypothesis 1. The operating cash flow and profitability indicators are significantly influenced by the management rates but are not influenced in any way by the labor productivity To test these assumptions, we start from the study of the related literature and the mentioning of reference works for the theme of our research, followed by the presentation of the research methodology and data used. The last section, that of the conclusions, foreshadows the response to the assumptions and the recommendations following the research carried out

Literature Review

Data and Methodology

Evolution

Findings

Conclusions and Limits