The main theories of the dividend decision

This paper has like objective to present the main theories of the dividend decision. So, after a short introduction we present Lintner’s partial adjustment model, models derived from the Lintner’s and residual dividend theory.theories, dividend decision, adjustment model

THE RETURN - A MEASURE OF ECONOMIC AND FINANCIAL PERFORMANCES. A CASE STUDY FOR ROMANIAN INDUSTRIAL COMPANIES

Measuring the economic and financial performances of a company is a very complex activity and involves taking into consideration several quantitative and qualitative indicators, which have in view the entire activity of the company. Out of all the economic and financial indicators used to measure the performances of the enterprises, in this paper we took into consideration the profit, in all its forms. The study was conducted on 17 Romanian industrial companies listed on BSE, for the period 2005-2007.return, profit, performances, industrial enterprises

A Study Regarding the Level and the Dynamics of the Performances of the Romanian Industrial Companies

The work of the market economy in a modern and efficient way depends on the existence of an as large as possible number of competitive enterprises, both on the internal and external market. In order to make a global assessment of the economical and financial performances of the Romanian industrial companies, in this paper we set as a goal to analyze the dynamics of their number, the number of employees, as well as the main result indicators. The analysis is made both on the whole industrial companies and on types of size and this further allows pointing out the sectors with the highest level of the economical and financial performances.market economy, companies, the population, economical power

The market value added and the return on invested capital for industrial Romanian firms

The major objective of the company management is to maximize the value of the company and the wealth of the shareholders. In order to create value, a company must post results big enough to cover the operating costs and to properly remunerate the invested capital. A major factor of influence on the company’s value should be the level of the return. In this respect, this paper emphasizes the correlation between the market value added and the return on invested capital for 17 Romanian industrial companies listed on Bucharest Stock Exchange.market value added, return, market value, firm

Cost-Benefit Analysis - Economic Tool Used to Aid Decision-Making Regarding the Distribution of Public Funds

After 1990, the financial analysis of the phenomena that occur in firms has grown in importance. Financial analysts face new challenges as a result of Romania’s joining to the European Union. A thorough analysis of the investment decisions is required in order to access structural funds. Many projects that may be granted funds are not feasible from a financial point of view, generating economic and social implications. To demonstrate that the demanded funds are truly needed, the analyst has to identify and quantify as precisely as possible all costs and benefits generated by that specific investment, task which may be accomplished with the use of Cost-Benefit Analysis. For this reason, in the following pages, we shall present the main methodological aspects of the method accompanied by an example of how it is used.Cost-Benefit Analysis, structural funds, financial analysis, social and economic analysis, sensitivity analysis.

The Effects of Reevaluating the Balance Sheet on the Financial Standing of the Company

The annual financial statements of different companies must emphasize, for the internal and external users, the activity that was run and the standing at a specific moment of time. The assessment of a business doesn’t affect the accounting registrations. However, “the accurate image” provided by the book-keeping is a significant landmark for the evaluator when applying the evaluation methods. In this paper, in order to emphasize the effects of reevaluating the balance sheet on pointing out the financial standing, we have presented the calculation and the significance of the analysis indicators on a case study, before and after the reassessment operations.Financial analysis, reevaluation, financial standing, balance sheet

FLUCTUATION IN PENSION FUND ASSETS PRIVATELY MANAGED UNDER THE INFLUENCE OF CERTAIN FACTORS. STATISTICAL STUDY IN ROMANIA

On international level, the economic and financial crisis has determined a diminution of the asset value of compulsory pension funds, reflecting a reallocation of funds towards alternative or low-risk investments. The present paper indicates how the net asset value of privately managed pension funds in Romania may be affected or not by certain influence factors in direct correlation with different asset allocation strategies of pension funds. In this way, on literature review there are many studies which have analyzed the fluctuation of pension funds assets and a better reallocation of their investment in order to improve their efficiency. The experience of the value fluctuation of privately administered pension fund net assets is highly important, firstly beacause of its effects on the increase and the decrease of invested values for the insured personsâ€(tm) accounts, under the circumstances of constantly maintaining their contributions and, implicitly, the results achieved through these investments. The research methodology consists in testing of five variables: currency exchange rate, credit interest rate, bank deposit interest rate, reference interest rate and value of the stock exchange market index (BET-C index), by means of the multiple linear regression method. The conclusion is that only two of these factors, namely, the currency exchange rate and the reference interest rate, influence net asset value of privately managed pension funds, the second pillar, one in direct and the other in indirect correlation. In order to neutralize the effects generated by the diminution of the net asset value of privately managed pension funds, considering a short time horizon, we shall elaborate a dynamic mix of their investments able to adapt to the fluctuations of the influence factors. Thus, new opportunities will be generated in order to achieve the efficiency of pension funds and to prevent the diminution of the value of insured individualsâ€(tm) contributions to these pension funds.privately managed pensions, net assets, investments, factors of influence, statistical correlations

A STUDY REGARDING THE BANKRUPTCY IN ROMANIA. REGIONAL COMPARISONS

The academic world showed a big interest for the study of the companies in financial distress in the last years, due to the implications of the bankruptcy process on the Romanian economy. In this paper, we carried out a study of the main specific features of the bankruptcy in Romania in the period 2003 – 2005. Also, we made a comparison with other countries from the Eastern and Central Europe. The results of this study emphasizes that the trading branches provide the biggest number of bankruptcies in the Romanian economy and also that Romania has a bigger bankruptcy rate than the average level in the Eastern Europe.bankruptcy, failure, financial distress, judiciary reorganization

BASICS FOR A GRAPHICAL MODEL OF RISK – PERFORMANCES CORRELATION

A company runs a business with the goal to get a minimum level of performance.Before making an investment decision, an adequate analysis of the risk-performance correlationhas to be done. In order to emphasize the connection between these two terms, in this paper, wepropose a graphical model for analyzing the correlation between the size of the risk and the size ofthe performances. In this respect, we’ll define the performance as a function of two variables:efficiency and efficacy. The risk is considered as a function of the same variables, the efficiencyand the efficacy, and it comprises two components: the operational risk and the financial risk. Thegraphical model analyses the strategy of the company regarding the concentration of its effort onthe efficiency or the efficacy and, respectively, the correlation between the performance and therisk depending on the adopted ways.performances, risk, efficiency, degree of operating leverage, degree of financial leverage

THE EFFECTS OF REEVALUATING THE BALANCE SHEET ON THE FINANCIAL STANDING OF THE COMPANY

The annual financial statements of different companies must emphasize, for theinternal and external users, the activity that was run and the standing at a specific moment oftime. The assessment of a business doesn’t affect the accounting registrations. However, theaccurate image provided by the book-keeping is a significant landmark for the evaluatorwhen applying the evaluation methods. In this paper, in order to emphasize the effects ofreevaluating the balance sheet on pointing out the financial standing, we have presented thecalculation and the significance of the analysis indicators on a case study, before and afterthe reassessment operations.Financial analysis, reevaluation, financial standing, balance sheet