Proceedings

Analyzing these results shows that for the basic materials sector:
� The variable with maximum potential explanatory is ROA followed by EPS and
ROE. The profitableness estimator calculated by reference to the total on net
assets appears to be negatively correlated with the dynamic of the stocks return.
A possible explanation for this result is that the invested resources return is
estimated before the allocation of the net results of the issuer. Consequently, it
reflects the efficiency of the resource, but does not indicate the way the results
achieved due to the global activity of the company are used. In the same time
the sectors and / or issuers which register a growing rhythm higher than the
market average associate higher levels of ownership and trading risk. These
risks are offset by the existence of a higher level of results that can be
distributed to potential investors so that the risk premium required by them and
incorporated into the prices decreases once with the increase of ROA providing
one of the channels through which the positive dynamics of this rate attenuates
price volatility;
� In the same time, an increase of the return obtained by investors quantified by
ROE determines an increase of the relative preference for holding their shares
with a higher level of that rate. Consequently, the growth of ROE determine the
increases of demand translated in conditions of higher elasticity of price in their
dynamics;
� Similar effects are exercised by the increase of EPS, variable which is
consistent and systematic associated with the dynamics of prices for all
considered sectors.
In the industrial sector case the results presented in table 1 indicate the followings:
� The variable with maximum potential explanatory is the effective interest rate
followed by diluted EPS. The dynamics of effective interest rates is negatively
correlated with the dynamics of stocks return. The dynamics of this rate can
generate a volatility of revenues as a result of increasing the weight of borrowed
capital in total debts. In the same time, in the industrial sector are accepted
higher levels of borrowed capital necessary to conduct and / or develop the
issuing company's business;
� The dynamics of the diluted EPS indicator is similar to the EPS indicator
dynamics, thus systematically associated to price dynamics of the sector.
The only variable which has a maximum explanatory potential in the technology,
telecommunication and media and energy sector is EPS.
In the last sector case - consumer, health - according to the obtained results the
following can be mentioned:
� The variable with maximum potential explanatory is EPS followed by current
and quick liquidity. EPS dynamics is a direct factor of influence of the
dynamics of stock prices of issuers because it expresses the share of profit for
each share owned;
� Similar effects are exercised also by the dynamics of liquidity rates which
shows the capacity of an issuing company to cover their current liabilities with
current assets.
Based on the results obtained from the analysis of the financial statements descriptors
using statistical model there were identified the interconnections between these
~ 353 ~