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Leasing As A Form Of Financing In Romania. From Theory To Practice

Author

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  • GEORGE-AURELIAN TUDOR

    (BUCHAREST UNIVERSITY OF ECONOMIC STUDIES, ROMANIA)

Abstract

The increasingly pressing presence of today's financial difficulties is leading top management, and not only, to identify new opportunities for economic revitalization, which implies the operationalization of a higher level of cash flow compared to previous periods and, why not, the orientation towards new business directions of companies operating in the current economic environment. Thus, the principal focus of this article is on respondents' perceptions of the use of leasing as a form of financing, given that more and more companies are using this form of financing (leasing) to purchase cars. This research also contributes to the literature on the concept of leasing as a form of financing. The authors' expectations are aimed at confirming a high level of leasing's appreciation as a financing instrument and valuable in companies' strategy setting. In this article the authors carried out a questionnaire that was distributed to 100 respondents, accounting professionals and not only, on the basis of which we can investigate their (the respondents') appreciation of leasing as a form of financing, as well as to identify some stereotypes on how accountants and not only accountants act in the current economic environment. Among the results obtained, 70% of respondents appreciate leasing as a form of financing. However, leasing as a instrument for setting objectives is appreciated to a lesser percentage. Also, the relevance of the accountant plays an important role in the process of advising companies, with 70% of respondents appreciating this aspect.

Suggested Citation

  • George-Aurelian Tudor, 2022. "Leasing As A Form Of Financing In Romania. From Theory To Practice," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 91-102, June.
    • Handle: RePEc:cbu:jrnlec:y:2022:v:3:p:91-102
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    References listed on IDEAS

    as
    1. Kusano, Masaki, 2018. "Effect of capitalizing operating leases on credit ratings: Evidence from Japan," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 30(C), pages 45-56.
    2. Bourjade, Sylvain & Huc, Regis & Muller-Vibes, Catherine, 2017. "Leasing and profitability: Empirical evidence from the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 30-46.
    3. Hsieh, Su-Jane & Su, Yuli, 2015. "The economic implications of the earnings impact from lease capitalization," Advances in accounting, Elsevier, vol. 31(1), pages 42-54.
    4. Munir, Qaiser & Kok, Sook Ching & Teplova, Tamara & Li, Tongxia, 2017. "Powerful CEOs, debt financing, and leasing in Chinese SMEs: Evidence from threshold model," The North American Journal of Economics and Finance, Elsevier, vol. 42(C), pages 487-503.
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