RISK ANALYSIS USING THE EXPLOATATION LEVERAGE COEFFICIENT AT PASSANGER ROAD TRANSPORTATION COMPANIES

Vlad Iordache (), Costin Ciora and Adina Andreea Ohota ()
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Vlad Iordache: Academy of Economic Studies from Bucharest, Romania
Adina Andreea Ohota: Academy of Economic Studies from Bucharest, Romania

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2011, vol. 11, issue 1(13), 176-183

Abstract: Business activity is usually influenced by the emergence of operational risk, but we should not overlook the impact that the structure of funding sources can have on the outcome of the enterprise. The purpose of this paper is to show the level of operational risk present at a number of five listed companies in the passenger road transportation industry. The analysis was based on interpretation of risk level using the results obtained by calculating the coefficient of economic leverage for a period of five years; the purpose was to demonstrate that using this tool managers can make decisions in a short time so that decision making process will not be long standing.

Keywords: breakeven point; degree operating leverage; economic risk; elasticity; risk (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:scm:ausvfe:v:11:y:2011:i:1(13):p:176-183

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