THE IMPACT OF REAL ESTATE INVESTMENTS ON THE PERFORMANCE OF THE ENTITIES LISTED AT THE BVB

Abstract

The current paper is part of a wider study which aims at identifying the determining factors of the performances of the entities in the real estate field and the setting up of a composite index of the companies’ performances based on a sample of 29 companies listed at the BVB Bucharest (Bucharest Stock Exchange) in the year 2019 using one of the multidimensional data analysis techniques, the principal component analysis. The descriptive analysis, the principal component analysis for setting up the composite index of the companies performances were applied within the study in order to highlight the most important companies from the point of view of the financial performance. The descriptive analysis of the data set highlights the overview within the companies selected for analysis. The study aims at building a synthetic indicator that will show the financial performance of the companies selected based on 9 financial indicators using the principal component analysis PCA. The 9 indicators considered for the analysis were selected based on specialised articles and they are: ROA – return on assets, which reflect the company’s capacity of using its assets productively, ROE – return on equity, which measures the efficiency of use of the stockholders’ capitals, rotation of total assets, general liquidity ratio, general solvency ratio, general dent-to-equity level, net profit margin, gross return of portfolio.