Financial Risk Part of Efficiency Rate Variation Related to Equity

Caruntu, Genu Alexandru and Romanescu, Marcel Laurentiu (2008): Financial Risk Part of Efficiency Rate Variation Related to Equity.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial risk, interest, debts, equity, interest ratio, capital
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining

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