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Financing Management of Companies

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Governing Business Systems

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

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Abstract

The aim of this paper is, firstly, to explore the short- and long-term sources of financing available to companies, and secondly, to determine the sources of short- and long-term financing to be employed on the basis of lowest cost criteria and taking into account the importance of scientifically-based financial management. A company should consider the cost of all available sources along with their impact on its profitability and solvency, and decide on the optimal amount of short- and long-term sources of financing and their optimal composition from the cost-effective point of view. In determining which sources of short- and long-term financing to employ, it is important to take into consideration the cost of all sources available to companies and choose those most appropriate in terms of effective after-tax interest rate because this is what represents the real cost of financing. The result of the work will provide equations for calculating an effective interest rate for different short- and long-term financing sources available to companies.

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Author information

Authors and Affiliations

  1. University of Rijeka, Rijeka, Croatia

    Eleonora Kontuš

Authors
  1. Eleonora Kontuš
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Correspondence to Eleonora Kontuš .

Editor information

Editors and Affiliations

  1. Professor of Management, University of Palermo and Business Systems Laboratory, Palermo and Avellino, Italy

    Gandolfo Dominici

  2. Professor of Management, University of Rome “Link Campus”, Naples, Italy

    Manlio Del Giudice

  3. Law and Economics of Productive Activities, Sapienza University of Rome, Rome, Italy

    Rosa Lombardi

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Kontuš, E. (2018). Financing Management of Companies. In: Dominici, G., Del Giudice, M., Lombardi, R. (eds) Governing Business Systems. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-66036-3_1

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