THE IMPACT OF FINANCIAL PERFORMANCE ON FIRM VALUE: THEORETICAL APPROACHES AND PRACTICAL IMPLICATIONS

This paper explores the relationship between financial performance and firm value, focusing on how financial indicators affect market valuation. The study integrates relevant contributions from corporate finance literature and highlights the central role of profitability, capital structure, and firm size in the value creation. The analysis is framed in the context of emerging markets, with references to the Romanian capital market. The study emphasizes the importance of sustainable financial performance and prudent risk management for enhancing firm value, providing practical insights for investors and managers.