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Internal Sources of Financing Companies on the Basis of Static and Dynamic Indicators: Comparative Analysis

Author

Listed:
  • Pavlović, Radica
  • Bukvić, Rajko
  • Gajić, Aleksandar

Abstract

The Republic of Serbia is characterized by unsatisfactory macroeconomic environment (high degree of illiquidity, high inflation rate, rising unemployment, decline in the level of capacity utilization, followed by the process of globalization, deregulation and liberalization of the market with all its negative connotations to the growth and development of our country). Under such conditions where there is a shortage of liquid assets the financial capital has moved from the real to the financial sector, which led companies to over-indebtedness and shutdown of their own capacities. Therefore, capital investments largely depend on internal sources of financing and the ability of companies to internally generate funds for investments. In this regard emphasis is placed on the difference in the assessment of the investment ability of companies based on internal sources of financing measured using static and dynamic indicators in order to prove the necessity of applying dynamic coefficients which unfortunately are not present in our domestic practice.

Suggested Citation

  • Pavlović, Radica & Bukvić, Rajko & Gajić, Aleksandar, 2015. "Internal Sources of Financing Companies on the Basis of Static and Dynamic Indicators: Comparative Analysis," MPRA Paper 72216, University Library of Munich, Germany, revised 2015.
    • Handle: RePEc:pra:mprapa:72216
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    dynamic analysis; investments; financing;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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