THE ECONOMIC RATE OF RETURN – INSTRUMENT FOR MEASURING THE COMPANIES’FINANCIAL-ECONOMIC PERFORMANCE

Considering the present economic context, the measurement of performances has become a permanent preoccupation for organizations, since the whole process is based on it, offering the necessary feedback to identify both the positive actions which have led to favorable results for the organization, and the negative ones, in order to correct them in the future. To do this, we have to measure what is most importantly to measure. Starting from these considerations, the present paper approaches from a theoretical and practical point of view the economic rate of return as the indicator which synthesizes best an organization’s financial-economic performance. We have calculated and analyzed the economic rate of return for a group of Ten Romanian Firms in the food industry, through different calculation relations, pointing out the advantages/disadvantages of each calculation method.economic rate of return, measurement of financial-economic performance

USING LINEAR REGRESSION IN THE ANALYSIS OF FINANCIAL-ECONOMIC PERFORMANCES

Seeing that the steady pace of development and evolution of modern society has left its mark on the phenomena in all fields of activity, including in the field of economics, the analysis of financial-economic performances, as a major preoccupation of firms, has made a huge qualitative leap, by shifting the focus to the exploitation of databases (through adequate techniques) and the thorough interpretation of results. Starting from the idea that in economics, as well as in other sciences, anything has the tendency to depend on anything else, in this paper we intended to develop an econometrical model capable of expressing the relation between the economic rate of return- as a fundamental indicator of expressing the firm’s financial-economic performance- and its determinant factors. The multiple linear regression model has been developed through the analysis of data from 30 Romanian companies in the processing industry and by using the specific SPSS instruments, version 16.0.multiple linear regression model, financial-economic performances,economic rate of return