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Analysis Of The Effects Of Financing And Risk Management On The Value Of Firms Listed On The Bucharest Stock Exchange

Author

Listed:
  • MIHAELA BRINDUSA TUDOSE

    (GHEORGHE ASACHI TECHNICAL UNIVERSITY, IASI, ROMANIA)

  • VALENTINA DIANA RUSU

    (ALEXANDRU IOAN CUZA UNIVERSITY, IASI, ROMANIA)

Abstract

The paper aims to assess the effects of financing and risk management on firm value of companies and to provide additional evidence in the area of empirical debates. For these purposes, we performed a regression analysis (based on the fixed-effects model), which reflects the effects of the two policies (i.e. financing and risk management) on the value of the firms listed on the Bucharest Stock Exchange. The dependent variable was value of the firm; we used Tobin’s Q as a proxy. Independent variables were: financial structure, risk management, financial return and firm size. The findings reveal that two of the four examined variables yield significant positive effects on the value of firms (financing structure and return on assets); for the other two independent variables analysed (risk management and firm size), the hypotheses were rejected.

Suggested Citation

  • Mihaela Brindusa Tudose & Valentina Diana Rusu, 2018. "Analysis Of The Effects Of Financing And Risk Management On The Value Of Firms Listed On The Bucharest Stock Exchange," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 44-58, April.
    • Handle: RePEc:cbu:jrnlec:y:2018:v:2:p:44-58
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    References listed on IDEAS

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