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Financial Tools and Risks Related to Their Use by Economic Entities in Romania

Author

Listed:
  • Ilie Răscolean

    (University of Petroşani, Romania)

  • Ileana-Sorina Rakos

    (University of Petroşani, Romania)

Abstract

With this article the authors are trying to briefly present the evolution of capital market risks associated with the use of financial instruments by economic entities. Over time, risk assessment methods have evolved, with the aim of providing accurate and timely information to decision-making. Understanding the uncertainty and risks affecting the process deployment helps improve decisions. If, in the 20th century, companies were preoccupied with dominating the economy and stock exchanges, in the 21st century the emphasis was on risk management and assessment in a holistic way. In the current economic context, the success of a business is a problem of adaptation to the environment, and the connection of an economic entity to the economic and social environment is a premise of their functionality. The conceptual evolution between the financial and accounting approach of financial instruments influenced their relationship to their use by economic entities in their elementary preoccupations (investment, financing and exploitation).

Suggested Citation

  • Ilie Răscolean & Ileana-Sorina Rakos, 2017. "Financial Tools and Risks Related to Their Use by Economic Entities in Romania," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 17(2), pages 215-226.
    • Handle: RePEc:pet:annals:v:17:y:2017:i:2:p:215-226
    as

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    File URL: https://www.upet.ro/annals/economics/pdf/2017/p2/Rascolean_Rakos_2.pdf
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    References listed on IDEAS

    as
    1. Nikolaos G. Theriou, 2015. "Strategic Management Process and the Importance of Structured Formality, Financial and Non-Financial Information," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-28.
    2. Mariana Man & Raluca Elisabeta Felea, 2007. "A Study Regarding the Re-treatment of the Balance Sheet and of the Profit and Loss Account under Circumstances of Inflation and Hyper-inflation Approached According to the Conception of International ," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 7, pages 225-242.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial instrument; economic entity; risk; capital market; financial market;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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