Understanding the determinants of firms’ performance. Empirical study using a Romanian dataset

After initially depicted the multidimensionality of organizational performance, I use a pooled dataset of 1204 observations across the years 2005, 2006 and 2007. The observations included in the analysis have all non-missing data. An initial selection from a much larger dataset has been conducted in order to eliminate observations with missing data. Our results show that time effect in itself is not enough to impact significantly on organizational performance. Yet we have found evidence for structural changes in Romanian Economy affecting organizational performance. We have also documented that the effect of financial leverage on organizational performance is limited to certain industries. The model is valid in spite that the model does not account for (full) multidimensionality of organizational performance.