Financial Risk Part of Efficiency Rate Variation Related to Equity

Caruntu Alexandru and Marcel Laurentiu Romanescu

MPRA Paper from University Library of Munich, Germany

Abstract: Every enterprise develops the activity using both equity and borrowed capital, different one by the other through the generated/engendered costs. The financial risk determines the variability of result indicators, thanks to the financial structure of enterprise modification. Due the lack of own resources, in order to activity development, the enterprise uses the loans in order to achieve the oportunity of one investment.

Keywords: financial risk; interest; debts; equity; interest ratio; capital (search for similar items in EconPapers)
JEL-codes: D81 G32 J5 O3 (search for similar items in EconPapers)
Date: 2008-10-08
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11601

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