Proceedings

Of course, there are some clear limits of the proposed analysis. Among them:
• The limited number of issuers / financial ratios considered;
• The heterogeneous structure of the data sample;
• The short data span;
• The possible disturbances induced by the nonlinear interactions among the
explanatory variables etc.
Further research directions should minimally: 1) considering an underlying
mechanism for the potential impact in the changes in financial status and policies
dividends at issuers level for both the market values and business turnovers; 2)
integrating a larger set of explanatory variables especially from the descriptors of
financial equilibrium and performances; 3) providing more conceptual explanations
for the signaling effects of the financial ratios and for their impact on investors’
decisions.
Despite such caveats, it can be argued that even such a limited study can highlight the
existence of some signaling mechanisms through which the informational variables
describing the issuers’ financial status can affect the prices even in a case of an
emergent market with significant informational imperfections such as the Romanian
one.
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