The Profitability Of Companies With Foreign Ownership

The participation of foreign ownership in the Romanian companies has grown rapidly during the past few years. A significant number of Romanian companies were founded or purchased by foreign investors or merged with foreign companies. These modifications that appeared in the structure of the ownership of the Romanian companies could be more profound than in any other country. The reasons are obvious: access to resources, opportunities of the Romanian market, adjusting the products to the preferences and needs of the Romanian customers, lower production costs. However, the dramatic change of the ownership structure of the Romanian companies generated vivid debates among the businessmen, researchers, politicians and the large general public. The main objective of this book is to investigate the relation between the foreign ownership and the performance of Romanian manufacturing firm. The book contains a study which was conducted for a sample 261 of companies listed on Bucharest Stock Exchange.