Home  Journals  Finance and Credit  19(355) – 2009 May

Influence of decisions about funding on profitability of common stocks

Available online: 16 September 2009

Subject Heading: Stock market

JEL Classification: 

The present study is devoted to the analysis of influence of attracting borrowed funds and issue of equity securities on profitability of common stocks. The article provides a review of the existing formal models of relation between the amount of borrowed funds and profitability, distinguishes the factors directly influencing the growth of value of common stocks in real-life conditions. Based on the received empirical data, the conclusion provides recommendations for increasing the profitability of equity instruments at the cost of attracting financial resources from a corresponding source.

Keywords: funding, economic efficiency, capital, revenue, share, profitability

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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