is there a macroeconomic impact on the profita.DOCVIP

Is there a macroeconomic impact on the profitability of the company? Case-study on the companies listed on the Bucharest Stock Exchange PHD Candidate Cristina Maria Triandafil cristina_triandafil@ PHD Professor Petre Brezeanu brezeanupetre@ PHD Senior Lecturer Monica Petcu petcu_mona_a@ Academy of Economic Studies Bucharest Abstract: This paper aims at identifying a potential impact of the macroeconomic environment on the profitability of the companies listed on the Bucharest Stock Exchange. This research derives from the most recent literature on the macroeconomic determination of the capital structure of companies located into emerging countries. Indeed, as for these corporations, there has been agreed on the risk transfer between sovereign and corporate spreads, but every emerging country incurs a particular approach and generalization tends to decay. Therefore, the research focuses on highlighting out the macro determination of the corporate profitability; there will be developed a complex perspective, following up the mixture between idiosyncratic and systemic approach. Keywords: default risk, macroeconomic impact, profitability, idiosyncratic INTRODUCTION Global economy triggered corporate sector internalization. Companies became more and more integrated into a borderless world, designing and implementing strategies in order to reduce costs through economy of scale and outsourcing. Meanwhile, corporations are more and more exposed to desequilibrums originating from the international environment. Macroeconomic volatility impacts them more consistently, especially from the perspective of their creditworthiness and profitability. Economic cycle is closely related to corporate profitability. During boom periods, profitability potential increases while recession brings it down. An economic downturn triggers the probability to not be able to generate enough cash-flow in order to cover the financial obligations. During the last decade, analysts agre