FACTORS THAT MAY DETERMINE THE RECOVERY RATE OF FINANCIAL RISK DAMAGES
Nicoleta Diana Rosioru
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Nicoleta Diana Rosioru: Spiru Haret University of Bucharest, Romania
Risk in Contemporary Economy, 2015, 359-364
Abstract:
The information about the performance of a company, especially about its profitability, are useful to the consideration of potential changes of the economic resources, which the company might further control and the forecast of the ability to generate treasury flows by the existent resources. Also, based on the performance, judgments are expressed, aiming the efficiency whereof the company may use new resources. The performance of company may be influenced by its financial risk. The financial risk is defined as “variability of result indicators, under the incidence of financial structure of the company” . It is established by “the financing policy of the company, by equity or loans”. The financial risk results by the structure of the company shareholding or by the use method of financial instruments. The financial risks result by different sources, including changes of the interest rate, currency trades, expansions of lending operations, issuance of shares, as well as the use of derived financial instruments (IFD).
Keywords: administration; cost; risk; risk management; strategic management of risk; ensurance; risk exposure; risk financing; payment of losses; risk assignment (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fserec:y:2015:p:359-364
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