Monday, 6 July 2020

Recent Perspectives of the Impact of Financial Structure on Return on Equity: Evidence from Wholesale of Motor Vehicle Parts and Accessories Industry | Chapter 12 | Current Strategies in Economics and Management Vol.4

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 Baciu
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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