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Implication Of Decisions Of Financing Policy On The Financial Profitability And Stability Of The Company

Author

Listed:
  • Pop Mugurel Gabriel Sorin

    (“Dimitrie Cantemir†Christian University Bucharest, Faculty of Economic Sciences of Cluj-Napoca)

  • Staneanu Gheorghe

    (“Dimitrie Cantemir†Christian University Bucharest, Faculty of Economic Sciences of Cluj-Napoca)

Abstract

The present study aims at analyzing the influence of decisions on financing policy of the current activity on profitability and financial stability of the company. Of course, the realization of such a research is not possible without a pertinent analysis on the concepts expressed in the literature of this field. In relation to this matter, we find that each author has his own concept about the subject under review. These expressed views, based on previous research, are related to the domain under analysis. Our research is in the current phase, a theoretically applied one. It is based on the comparisons we make between different means of financing the company's current activity. We are convinced that an accurate determination of the influence of decision on financing policy on the profitability and financial stability, helps the financial management, by facilitating the process of adopting the most appropriate funding decisions. Our research results are outlined in the information provided on financial management of the company that will lead to a better substantiation for decision-making policy-related process on funding.

Suggested Citation

  • Pop Mugurel Gabriel Sorin & Staneanu Gheorghe, 2012. "Implication Of Decisions Of Financing Policy On The Financial Profitability And Stability Of The Company," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 399-404, July.
    • Handle: RePEc:ora:journl:v:1:y:2012:i:1:p:399-404
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    References listed on IDEAS

    as
    1. Rajan, Raghuram G & Zingales, Luigi, 1995. "What Do We Know about Capital Structure? Some Evidence from International Data," Journal of Finance, American Finance Association, vol. 50(5), pages 1421-1460, December.
    2. Chen, Jean J., 2004. "Determinants of capital structure of Chinese-listed companies," Journal of Business Research, Elsevier, vol. 57(12), pages 1341-1351, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    policy of funding; decision; modalities of financing own resources; attracted resources; self-financing; leverage ratios; influence;
    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

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