Financial risk and stock prices

摘要

The main objective of this study is to determine the relationship between the financial situation of the companies listed on the capital market in Romania and the evolution of their stock prices. The analysis takes into account the influence of the financial situation of issuers on stock prices on short medium or long term. To quantify these influences we used a global financial indicator of financial situation of the companies selected for analysis based on 32 financial ratios calculated for each company during a period of 4 years (2007-2010).