Proceedings of the 5th International Conference on New Ideas in Management, Economics and Accounting
Year: 2018
DOI: https://www.doi.org/10.33422/5imea.2018.02.54
Performance characteristics of foreign versus locallycontrolled companies in Romania: a cross-sectoral analysis
Alexandra Horobet and Lucian Belascu
ABSTRACT:
Our research focuses on the performance characteristics of Romanian enterprises controlled by foreign capital and those controlled by local capital, in order to examine the differences between the two categories of companies after the global financial crisis. The analysis is based on data available on Eurostat FATS – Foreign Affiliates Statistics and takes into account Romanian companies in the five largest economic sectors selected on the basis of the highest average values of gross value added and turnover of foreign-controlled enterprises during the period. The 20082014 period has not been easy for all Romanian companies; faced with the effects of the economic and financial crisis and afterwards with the recession in the European Union, they saw the very good performances recorded in 2007-2008 significantly reduced, as shown by the main economic indicators. Our analysis supports the idea that Romania has benefited greatly from the activity of enterprises with foreign capital and that companies with Romanian capital, whose performance is significantly inferior to the performance of enterprises controlled by foreign capital, should make a stronger commitment to the process of learning from the former.