CORPORATE GOVERNANCE CHOICE REGARDING SMEs FINANCING STRATEGIES IN ROMANIA

Sorin Romulus Berinde () and Partenie Dumbrava ()
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Sorin Romulus Berinde: Department of Business, Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania
Partenie Dumbrava: Department of Business, Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania

JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, 2015

Abstract: The impact of financing strategies upon the financial information (released to users through financial statements) is different in the case of the financial position in comparison with the financial performance. The present study aims to establish, for the Romanian SMEs, which is the main choice of corporate governance as financing strategy. Further, the influence of a series of factors upon the financing strategy is investigated using a multilinear regression model. The study is based on a sample of 1,455 Romanian SMEs for the period 2005-2014. The main finding of the present study indicates that the main choice of corporate governance as financing strategy is the self-financing for 76.50% of the Romanian SMEs. The present study reveals that the variables influencing the corporate governance decisions are: the (business) expertise, the business size, the financial performance according to financial statement, and the main business area of activity. It seems that the legal structure has no influence on the financing decisions. The results of the present paper confirm and extend the findings of other studies in this area with data concerning SMEs in an European developing country.

Keywords: financing strategy; financial statements; corporate governance; regression model (search for similar items in EconPapers)
JEL-codes: M16 M21 M40 (search for similar items in EconPapers)
Date: 2015
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http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_4_2015.pdf Revised version, 2015 (application/pdf)

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