Sectoral Study of the Correlation Risk – Return for Romanian Companies

To illustrate the connection between the rates that reflect the companies’ financial performance, namely the return on assets and the return on equity and a measure of the companies’ risk, measured by volatility in outcome indicators, we considered 63 companies listed in category I and II on the Bucharest Stock Exchange, that are sectoral grouped. Following the econometric modelling using the GMM – System, it can be concluded that in terms of light industry, the efficiency of investments and the adoption of certain financial positions appear to be the key factors in the dynamics of the sectoral risk. For heavy industry, the global risk dynamics can be associated with the total assets performance of the companies in the sector.