Abstract: The article studies the determinants of short-term liabilities of financially distressed small and medium-sized enterprises in Bulgaria. The research is based on data from the financial statements of one hundred non-financial enterprises in different industries in the period from 2014 to 2016, provided by the National Statistical Institute.
A company is defined as financially distressed if it cannot cover its short-term liabilities with its operating cash flow. By employing multiple regression analysis, we design a model, which shows the positive impact of the levels of net sales revenue, inventory, receivables from customers and suppliers and financial assets, and the negative impact of the ratio of current assets to total assets on the short-term debt of financially distressed SME-s.
Abstract: The aim of this article is to test a methodology for the optimisation of capital structure in Bulgarian companies, adapted for Bulgarian conditions, on the basis of fundamental company indicators and stock exchange rates over the period 2010 – 2013. A similar methodology provides the answer to a series of questions and solves significant problems faced by business practice, related to the realisation of the main purpose of financial managers in Bulgarian companies – maximising stock wealth. The achievement of this aim is based on the effect of financial leverage on the profit of one share and its stock exchange capitalisation. This research ascertains the complete improvement of post-crisis interest conditions for business credit by financial institutions to companies in our country. Within the range of the research, we identify seventeen separate issues in the field of applied capital optimisation which require precise financial and investment circumstances and appropriate solutions.
Abstract: Corporate financing requires sufficient knowledge on the two basic elements of liability as a component of financial balance: long-term and short-term equity. Respectively the article analyzes the ratios at which company investment may be carried out by equity and various issues of positive and negative equity structure are being outlined as well. Certain recommendations are being made for optimizing owners’ equity and debt capital in order to achieve an effective investment policy. Spe¬cial attention has been drawn on capital management practices in Bulgarian compa¬nies recognizing those practices’ constant need of improvement and development.