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The Determinants Factors of the Capital Cost – Evidence from 5 EU Countries

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  • Georgiana Sterea

    (Dunarea de Jos University of Galati, Romania)

  • Nicoleta Barbuta-Misu

    (Dunarea de Jos University of Galati, Romania)

Abstract

The aim of the paper is to highlight the importance and complexity of the company’s capital and its components and the extent to which its cost is influenced by several factors. In order to achieve this goal we have made a study on a sample of 15 companies from Romania and other 4 EU countries: Italy, Spain, France and Finland. All are SME’s and micro-enterprises that acting in the sector of "Growing of spices, aromatic, drug and pharmaceutical crops". For the study of capital cost determinants were selected five variables: return on equity, return on assets, general indebtedness, taxation and firm’s size in order to determine their influence on the cost of capital.

Suggested Citation

  • Georgiana Sterea & Nicoleta Barbuta-Misu, 2016. "The Determinants Factors of the Capital Cost – Evidence from 5 EU Countries," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 359-368.
    • Handle: RePEc:ddj:fserec:y:2016:p:359-368
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    References listed on IDEAS

    as
    1. Mihaela Dragota & Andreea Semenescu, 2008. "A Dynamic Analysis of Capital Structure Determinants. Empirical Results for Romanian Capital Market," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 4(4(521)), pages 65-80, April.
    2. Barbuta Misu, Nicoleta, 2009. "Modelling the Financial Performance of the Building Sector Enterprises – The case of ROMANIA," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 195-212, December.
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