THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS
The purpose of this paper is to analyze the existing theories for the capital structure of a corporation and to determine the factors that influence the financing decisions of Romanian corporations. The gearing ratios vary a lot among Romanian corporations pointing out the fact that the internal spe...
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doaj-0ca10a53104140d38f4da18b00ffd4072020-11-24T23:23:05ZdeuUniversity of OradeaAnnals of the University of Oradea: Economic Science1222-569X1582-54502013-07-0122110101017THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONSLacatus Viorel-Dorin0Vaidean Viorela-Ligia1Cuceu Ionut-Constantin2 3Faculty of Economics and Business Administration,,Faculty of Economics and Business Administration,,Faculty of Economics and Business Administration,,,The purpose of this paper is to analyze the existing theories for the capital structure of a corporation and to determine the factors that influence the financing decisions of Romanian corporations. The gearing ratios vary a lot among Romanian corporations pointing out the fact that the internal specific factors are the ones with a greater impact upon their capital structure, and not the external factors. Our empiric research evaluates the determining factors for the debt ratio (total debt/total assets) of some Romanian corporations, focusing on its explanatory variables by including them within simple and multiple econometric models. The panel data indicators computed for the companies in the Cluj area listed on the Bucharest Stock Exchange were evaluated with the OLS and FEM techniques.The results have been interpreted, pointing out that company size and asset turnover seem to have a positive influence upon the debt ratio of selected companies, while profitability and liquidity seem to influence the debt ratio of selected companies negatively.http://anale.steconomiceuoradea.ro/volume/2013/n1/106.pdfcapital structure, debt ratio, theories of capital structure, determinants of capital structure, empirical data |
collection |
DOAJ |
language |
deu |
format |
Article |
sources |
DOAJ |
author |
Lacatus Viorel-Dorin Vaidean Viorela-Ligia Cuceu Ionut-Constantin |
spellingShingle |
Lacatus Viorel-Dorin Vaidean Viorela-Ligia Cuceu Ionut-Constantin THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS Annals of the University of Oradea: Economic Science capital structure, debt ratio, theories of capital structure, determinants of capital structure, empirical data |
author_facet |
Lacatus Viorel-Dorin Vaidean Viorela-Ligia Cuceu Ionut-Constantin |
author_sort |
Lacatus Viorel-Dorin |
title |
THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS |
title_short |
THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS |
title_full |
THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS |
title_fullStr |
THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS |
title_full_unstemmed |
THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS |
title_sort |
influence of corporate specific factors upon financing decisions |
publisher |
University of Oradea |
series |
Annals of the University of Oradea: Economic Science |
issn |
1222-569X 1582-5450 |
publishDate |
2013-07-01 |
description |
The purpose of this paper is to analyze the existing theories for the capital structure of a corporation and to determine the factors that influence the financing decisions of Romanian corporations. The gearing ratios vary a lot among Romanian corporations pointing out the fact that the internal specific factors are the ones with a greater impact upon their capital structure, and not the external factors. Our empiric research evaluates the determining factors for the debt ratio (total debt/total assets) of some Romanian corporations, focusing on its explanatory variables by including them within simple and multiple econometric models. The panel data indicators computed for the companies in the Cluj area listed on the Bucharest Stock Exchange were evaluated with the OLS and FEM techniques.The results have been interpreted, pointing out that company size and asset turnover seem to have a positive influence upon the debt ratio of selected companies, while profitability and liquidity
seem to influence the debt ratio of selected companies negatively. |
topic |
capital structure, debt ratio, theories of capital structure, determinants of capital structure, empirical data |
url |
http://anale.steconomiceuoradea.ro/volume/2013/n1/106.pdf |
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