The Determinants Factors of the Capital Cost � Evidence from 5 EU Countries

The aim of the paper is to highlight the importance and complexity of the company�s capital and its components and the extent to which its cost is influenced by several factors. In order to achieve this goal we have made a study on a sample of 15 companies from Romania and other 4 EU countries: Ital...

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Bibliographic Details
Main Authors: Georgiana Sterea, Nicoleta Barbuta-Misu
Format: Article
Language:English
Published: Dunarea de Jos University of Galati 2016-07-01
Series:Risk in Contemporary Economy
Online Access:http://www.rce.feaa.ugal.ro/images/stories/RCE2016/StereaBarbutaMisu.pdf
Description
Summary:The aim of the paper is to highlight the importance and complexity of the company�s capital and its components and the extent to which its cost is influenced by several factors. In order to achieve this goal we have made a study on a sample of 15 companies from Romania and other 4 EU countries: Italy, Spain, France and Finland. All are SME�s and micro-enterprises that acting in the sector of "Growing of spices, aromatic, drug and pharmaceutical crops". For the study of capital cost determinants were selected five variables: return on equity, return on assets, general indebtedness, taxation and firm�s size in order to determine their influence on the cost of capital.
ISSN:2067-0532
2067-0532