Corporate finance under the mixture between microeconomic and macroeconomic determination. Analytical approach on CEE corporations

Citation

(2010), "Corporate finance under the mixture between microeconomic and macroeconomic determination. Analytical approach on CEE corporations", International Journal of Accounting & Information Management, Vol. 18 No. 1. https://doi.org/10.1108/ijaim.2010.36618aad.007

Corporate finance under the mixture between microeconomic and macroeconomic determination. Analytical approach on CEE corporations

Article Type: AMIS statement and abstracts From: International Journal of Accounting and Information Management, Volume 18, Issue 1

Abstract

This paper explores the link between idiosyncratic and fundamental dimensions of the corporate finance within CEE countries. We elaborate a vector error correction model integrating both idiosyncratic and macro-related indicators. We expect idiosyncratic variables to be closely related to the macro-fundamentals and we anticipate the sign of the relation. Conclusions regarding the long-term relationship between these variables differ by country from the perspective of the way macro-related variables enter the co-integration equations. The impact is different according to the peculiarities of the macroeconomic architecture.

Keywords Idiosyncratic, Fundamentals, CEE countries, Macroeconomic

Petre Brezeanu and Cristina Maria Triandafil

The Bucharest Academy of Economic Studies, Bucharest, Romania

Corresponding author

Cristina Maria Triandafil can be contacted at: cristina_triandafil@yahoo.com