Abstract

Study abstract
This study aimed to test the impact of the enterprise's return and the risk involved in its activity in making the financing decision for a sample of 30 production institutions in Eastern of algeria.
We adopted the descriptive and analytical approach in analyzing the financial statements of these companies during the period 2014-2017, in addition to using descriptive statistics methods, correlation analysis and multiple regression analysis, through model studied the effect of the following variables: size, profitability, liquidity, cost-effectiveness, sales growth, Business risk, asset turnover, rate of financing decision. concerning that these variables can be controlled, and managed in a way that serves the interest of the institution when financing its assets.
The study concluded that there is a statistically significant negative effect at the level of significance 0.05 for the profitability of the institution on the funding decision, which means, the profitability variable affects both directly and significantly the borrowing decision in the study sample, but the rest of the variables represented in size, liquidity, cost-effectiveness, sales growth The risk of exploitation, the rate of turnover of assets had no effect on the financing decision. the results indicated the great ability of the theory of peaceful financing in explaining the decision-making industry for Algerian economic institutions.
Finally, the study sugest a recommendation for the studied companies which rely on their internal sources of financing, must focus on the variable of the size of the institution in strengthening its negotiating ability to persuade the lending authorities to obtain short-term and long-term loans, because the growth of the size reduces the risks that lenders takes into consideration, It can also rely on its fixed assets to persuade the lenders to provide financing at a greater rate and at a lower cost. It also recommended reviewing the financing policy for the category that funds its fixed assets with short-term debt, which exposes them to financial hardship that threatens their long-term viability, through careful planning. of the financial structure, and the need to compare the cost-effectiveness of the debt to reduce the financial risk, and thus the ability to pay the debt at its maturity date,
Key words: productive organization, financing policy, financing decision-making, financial structure, return, risk

Information

Item Type:	Thesis
Divisions:	» Laboratory of Research and Economic Studies » Faculty of Science and Technology
ePrint ID:	2307
Date Deposited:	2020-10-06
Further Information:	Google Scholar
URI:	https://www.univ-soukahras.dz/en/publication/article/2307

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