A widely debated topic during the last years is represented
by the choice of financial structure of companies, especially in developing or
emerging countries, characterized by economies without a tough and a mature
financial system. The purpose of this research is to determine whether there is
a relationship between capital structure and firm performance of firms active
in Romania in the wholesale of motors vehicle parts and accessories (NACE
4531). Capital structure refers to how a firm chooses to finance their assets
and future growth by dividing debt into subcategories (bank, commercial) and
time horizon, while firm performance is evaluated by the return on equity
(financial return). By determining this relationship, firms in these sectors
should have a better understanding of how to select the financing for their
future growth. The main output of the study consists in the fact that the
financial structure divided by debt components of the companies does not
influence significantly the return on equity during periods of low interest
rates, like the case of Romania during 2016.
Author (s) Details
Mrs.
Rodica BaciuAuthor (s) Details
The Bucharest University of Economic Studies, Romania.
Professor Brezeanu Petre
The Bucharest University of Economic Studies, Romania.
View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/198
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