FINANCING POLICY OF FIRMS IN THE CONTEXT OF CRISIS-INDUCED VULNERABILITIES

Mihaela Brindusa Tudose; Valentina Diana Rusu

doi:10.29358/sceco.v0i25.381

FINANCING POLICY OF FIRMS IN THE CONTEXT OF CRISIS-INDUCED VULNERABILITIES

Authors

Mihaela Brindusa Tudose Gh Asachi Tehnical University of Iasi
Valentina Diana Rusu Alexandru Ioan Cuza University

DOI:

https://doi.org/10.29358/sceco.v0i25.381

Keywords:

financial crisis, financial fragility, financing policies, liquidity, solvency, vulnerability

Abstract

Our study analyses the changes in the financial structure of the firms in the context of the vulnerabilities induced by the financial crisis. The study show that there have been registered a reconfiguration of firms’ financial structure which has triggered an increase in their financial fragility and vulnerability to crises. The results obtained confirm that the effects of financing differ depending on the economic conditions in particular period (normal periods and crisis periods). In tranquil times solvency is more important for the firms than liquidity. After crisis, the firms became more cautious regarding liquidity, solvency and the prospect of securing long-term financial balance. These firms have abandoned the objective of maximizing the positive effects of debt financing adopting a more prudent financing.

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Author Biographies

Mihaela Brindusa Tudose, Gh Asachi Tehnical University of Iasi

Department of Engineering and Management
Valentina Diana Rusu, Alexandru Ioan Cuza University

Department of Interdisciplinary Research in Social Sciences and Humanities

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Additional Files

Published

27.07.2017

Issue

No. 25 (2017)

Section

Articles

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How to Cite

Tudose, M. B., & Rusu, V. D. (2017). FINANCING POLICY OF FIRMS IN THE CONTEXT OF CRISIS-INDUCED VULNERABILITIES. Studies and Scientific Researches. Economics Edition, 25. https://doi.org/10.29358/sceco.v0i25.381