IDEAS home Printed from https://ideas.repec.org/a/aio/aucsse/v2y2019i47p25-34.html
   My bibliography  Save this article

Considerations Regarding The Role Of Capital In The Financing Decision

Author

Listed:
  • Avram Costin Daniel

    (University of Craiova Faculty of Economics and Business Administration)

  • Dan Roxana Loredana

    (West University of Timisoara Faculty of Economics and Business Administration)

Abstract

Establishing the financing sources exerts, under the conditions of market economy, a significant impact on the development of business activity. In this way it is decided upon the financial structure of the company and measures are taken to ensure its optimal character. Because preserving financial independence and autonomy is a major aspect in the process of choosing financing sources, one can observe the security offered by equity used as financing sources in the operating activity. However, the company cannot use only equity financing because the rational objective is to maximize the entity’s value, and the cost involved in raising capital will be higher than the cost of the existing one.

Suggested Citation

  • Avram Costin Daniel & Dan Roxana Loredana, 2019. "Considerations Regarding The Role Of Capital In The Financing Decision," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(47), pages 25-34, December.
  • Handle: RePEc:aio:aucsse:v:2:y:2019:i:47:p:25-34
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/annals/v2_2019/003.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    financing sources; equity; financial structure; self-financing; social capital;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:2:y:2019:i:47:p:25-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anca Bandoi (email available below). General contact details of provider: https://edirc.repec.org/data/fecraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.