IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2022v6p77-83.html

The Influence Of The Costs Of Own And Borrowed Capital On The Value Newly Created By An Economic Society

Author

Listed:
  • LUCIAN-ION MEDAR

    (CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU)

  • MARIAN CATALIN CORICI

Abstract

The influence of the realization of economic value determined by the cost of equity capital and borrowed capital is in the permanent attention of shareholders and all participants in the financial exercise of an enterprise. Shareholders are directly interested in the value creation mechanism as the remuneration they expect for the capital invested and the risk assumed. The strategic object of increasing the performance of the organization and implicitly of the newly created value satisfies the immediate interest of the managers and of the other employees, constituting the guarantee of maintaining the jobs. Salary packages often also include clauses regarding obtaining a remuneration from the company's profit or participating in its share capital. At the level of the national economy, value creation means the efficient use of the national economic potential and on this basis the increase of the gross domestic product that contributes to the increase of social welfare.

Suggested Citation

  • Lucian-Ion Medar & Marian Catalin Corici, 2022. "The Influence Of The Costs Of Own And Borrowed Capital On The Value Newly Created By An Economic Society," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 77-83, December.
    • Handle: RePEc:cbu:jrnlec:y:2022:v:6:p:77-83
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2022-06/10_Medar.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    2. Thompson Fred & Rizova Polly, 2015. "How Government Creates Value?," Economic Themes, Sciendo, vol. 53(4), pages 449-466, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Imran Hanif & Muhammad Shahzad Hani & Asif Kamran & Rabia Khan & Shao Yunfei, 2016. "Knowledge Sharing And Innovation Performance Affected By Hr Generic Strategies: An Empirical Study Of Smes In China And Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 12(1), pages 272-306.
    2. Dinko Herman BOIKANYO, 2024. "Utilization Of 4ir Technologies To Enhance Strategic Intelligence And Dynamic Capabilities For A Sustainable Competitive Advantage," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 5-24, March.
    3. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    4. Jeffrey Yi-Lin Forrest & Zhen Li & Roger A. Solano & David J. Doorn, 2021. "Technological and Disruptive Innovations in a Nation's Industrialization and Leadership Development," International Journal of System Dynamics Applications (IJSDA), IGI Global Scientific Publishing, vol. 10(4), pages 1-17, October.
    5. Cannavale, Chiara & Esempio, Anna & Ferretti, Marco, 2021. "Up- and down- alliances: A systematic literature review," International Business Review, Elsevier, vol. 30(5).
    6. David Weitzner & Yuval Deutsch, 2023. "Harm Reduction, Solidarity, and Social Mobility as Target Functions: A Rortian Approach to Stakeholder Theory," Journal of Business Ethics, Springer, vol. 186(3), pages 479-492, September.
    7. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    8. Roberto Garcia-Castro & Ruth V. Aguilera, 2015. "Incremental value creation and appropriation in a world with multiple stakeholders," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 137-147, January.
    9. Helm, Roland & Gritsch, Stephanie, 2013. "Implementierung des Marketing-Intelligence Konzepts in B-to-B Unternehmen," University of Regensburg Working Papers in Business, Economics and Management Information Systems 474, University of Regensburg, Department of Economics.
    10. Isaak, Andrew, 2020. "An Explorative Study of Refugee Entrepreneurship and Startup Consulting in German-Speaking Europe: A Resource-Based Perspective," EconStor Open Access Book Chapters, in: European entrepreneurship research and practice: A multifaceted effort towards integration of different perspectives, pages 23-54, ZBW - Leibniz Information Centre for Economics.
    11. Luciana Aparecida Barbieri da Rosa & Clandia Maffini Gomes & Waleska Campos & Carolina Rodrigues & Tais Pentiado Godoy & Jordana Marques Kneipp, 2022. "Influencing Factors of The Innovation Power in the Adoption of Sustainability Strategies," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    12. Nur Mohd Zawawi & Sazali Abd Wahab & Abdullah Al-Mamun & Abu Sofian Yaacob & Naresh Kumar AL Samy & Syed Ali Fazal, 2016. "Defining the Concept of Innovation and Firm Innovativeness: A Critical Analysis from Resorce-Based View Perspective," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(6), pages 1-87, May.
    13. Bhawe, Nachiket & Rawhouser, Hans & Pollack, Jeffrey M., 2016. "Horse and cart: The role of resource acquisition order in new ventures," Journal of Business Venturing Insights, Elsevier, vol. 6(C), pages 7-13.
    14. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    15. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    16. Richard J. Arend & Moren Lévesque, 2010. "Is the Resource-Based View a Practical Organizational Theory?," Organization Science, INFORMS, vol. 21(4), pages 913-930, August.
    17. Galbreath, Jeremy, 2017. "Drivers Of Environmental Sustainability In Wine Firms: The Role And Effect Of Women In Leadership," Working Papers 253851, American Association of Wine Economists.
    18. Chi‐Hyon Lee & Manuela N. Hoehn‐Weiss & Samina Karim, 2021. "Competing both ways: How combining Porter's low‐cost and focus strategies hurts firm performance," Strategic Management Journal, Wiley Blackwell, vol. 42(12), pages 2218-2244, December.
    19. Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    20. Phebo D. Wibbens, 2023. "A formal framework for the RBV: Resource dynamics as a Markov process," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1562-1586, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:cbu:jrnlec:y:2022:v:6:p:77-83. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ecobici Nicolae The email address of this maintainer does not seem to be valid anymore. Please ask Ecobici Nicolae to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.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.