THE IMPACT OF FINANCIAL COMMUNICATION ON STOCK PRICE.
THE CASE OF OMV PETROM S.A. 2004-2013.

Ioana Anghel, Valahia” University of Târgoviște, Romania
Mariana Man, University of Petroșani, Romania

ABSTRACT: Financial information is used primarily with the aim of predicting the profitability of
companies. In order to achieve this goal, the information user resorts to fundamental analysis
tools which seek to determine the intrinsic value of an asset, submitting for analysis determinant
factors of performance such as earning, expenses and profits. By comparing the intrinsic value to
the market price, the investor has to make a rational decision. The present study follows the stock
performance evolution of OMV Petrom S.A. on the Bucharest Stock Exchange during 2004-2013,
in order to identify the main factors which impact share price and the price to book ratio with the
central objective of disclosing the importance of combined analysis of stock performance
indicators and financial reports, so that company performance is depicted according to reality.

Keywords: financial performance, stock performance, stock growth ratios, dividend ratios, financial
communication

JEL Codes: G32, M20, M 40, M41