Analysis of the Prevailing Factors of the Enterprise Financing Structure

Abstract

Determining an optimal financing structure is one of the managers' main objectives and at the same time problem which is difficult to be solved at a practical level. By means of econometric instruments, this study tried to identify that theoretical model based on classical and modern theories it is suitable to adopt an optimal financing structure of the enterprise. Starting from these facts, the empirical analysis has as object the financial data from companies listed at Bucharest Stock Exchange (BVB). The results obtained using the multiple linear regression and the method of main components reflect the fact that the variables taken into consideration explain in a great measure that the best structure of the enterprise capital could be fulfilled according to the principles of the pecking order theory only if we minimize the the weighted average cost of the capital (CMP), which is significantly influenced by the financial leverage (LEV), weight of fixed assets in the total assets (PAI) and return on equity (ROE).