THE ANALYSIS OF LEVERAGE INFLUENCE ON PERFORMANCE

Andrei Stanculescu

Theoretical and Applied Economics, 2008, vol. 12(517)(supplement), issue 12(517)(supplement), 104-107

Abstract: The financing sources selection for an enterprise is a major issue in corporate finance because it will eventually impact on financial performance. Although there are a multitude of studies on the subject, there still has not been reached a common denominator to enable scientific research to produce certain models of capital structure management in order to achieve the major goal in finance, respectively the maximization of shareholders’ wealth or market value of the enterprise. Starting from the classical principles of finance, best illustrated by the model of Modigliani & Miller, and by presenting some relevant studies conducted on the Romanian market, we offer a brief analysis approach regarding leverage influence on corporate performance.

Keywords: degree of leverage; capital market; correlation; classical finance; financial return. (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:12(517)(supplement):y:2008:i:12(517)(supplement):p:104-107

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