The driving engine of this research is to verify the stock price formation on the capital market in Romania, under the fundamental Modern Finance assumption of rational economic behavior and financial performance of the issuer, of the industry and the national economy. Moreover, our research...

Both the real estate market and the mortgage sector have had similar evolutions since 1990, with a significant influence on one another. In the first few years of this interval, the term „housing loans” was mostly associated with the state-run financing schemes for the purchase of such...

The abundance of risk metrics stems from the effort to measure the difference between the expected and actual returns, under a hypothesis of normality. Under the assumption of risk aversion, investors are likely to quantify risk using metrics which measure returns lower than the expected...

In the new economy, R&D potential of the companies (reflected by intangible assets) tends to make the difference between competing enterprises. Although investing in tangible assets is still viewed as important, the researchers have discovered that investors on capital market tend to buy stocks...

Although the field of modern finance has progressed impressively, it is still hard to explain on a scientific basis why people behave nonrationally when dealing with money. The classic finance assumes people rationalize and optimize their financial decisions. Behavioral Finance adds the...

According to the logics of the efficient capital investment, the management of the investment of the saving capital in the company’s assets must conclude, on the end of the financial year, with a plus of real value (NPV 0). From this point of view, in this paper we suggest the usage of an...

In this article we discuss one of the modern risk measuring techniques Value-at-Risk (VaR). Currently central banks in major money centers, under the auspices of the BIS Basle Committee, adopt the VaR system to evaluate the market risk of their supervised banks. Banks regulators ask all...

In the new economy, R&D potential of the companies (reflected by intangible assets) tends to make the difference between competing enterprises. Although investing in tangible assets is still viewed as important, the researchers have discovered that investors on capital market tend to buy stocks...

The corporations gain a power of influence, unthinkable years ago; they have acquired more and more rights and, in some way, govern the life of billions of peoples and of the earth in general. With every right, comes though the responsibility of the conservation and development of the...

In this article, the author has assumed himself an assignment somehow ostentatious but useful, we believe, naming the one to illustrate by means of figures, the influence of both leverage and economic growth over the cost of capital, cost which will be used in capital budgeting. This synthesis...