Long Term Financing Decision at the Level of Companies

Gabriela Dobrota and Chirculescu Maria Felicia
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Chirculescu Maria Felicia: Constantin Brancusi University, Faculty of Economics, Romania

Annals - Economy Series, 2009, vol. 1, 35-48

Abstract: Debates on the financing needs registered a firm levels were a constant concern of specialists but especially managers. Majority opinion is that the financing of investment must be made by sources having character of permanence. However, a problem whose answer is not easily determined is the degree to which it may use its own sources, borrowed or rented, to record the lowest financing cost. Since the shareholders require a higher remuneration of capital investments superior to those on the financial market, managers must seek to reduce the cost of borrowed capital and the growth rate of financial return. In this paper are presented issues relating to the structure and potential sources and funding the decision on cost related to each funding opportunities.

Keywords: financing; firms; management; investments; reduction of the cost of borrowed capital (search for similar items in EconPapers)
JEL-codes: D21 G17 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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