SELF-FINANCING OF COMPANIES: LEGAL APPROACH AND APPLICABILITY IN FINANCIAL MANAGEMENT
SELF-FINANCING OF COMPANIES: LEGAL APPROACH AND APPLICABILITY IN FINANCIAL MANAGEMENT

Author(s): Sergiu Paiusan, Luminiţa Păiuşan, Ștefania Amalia Nicoară
Subject(s): Economy, Law, Constitution, Jurisprudence, Business Economy / Management, Law on Economics
Published by: Editura Universităţii Vasile Goldiş
Keywords: self-financing; share capital increase; capital contribution; incorporation of reserves; conversion/compensation of receivables.
Summary/Abstract: Self-financing is an essential method of internal financing through which companies ensure their development and continuity without resorting to external sources of capital. In addition to the operational advantages, self-financing also provides tax benefits and contributes to the increase in the value of the share capital and the stock market value in the case of listed companies. This article explores the concept of self-financing, both from a legal and financial management point of view, and examines in detail the main methods of self-financing. Finally, the paper emphasizes the importance of this type of financing in managerial practice. This documentary study aims to significantly contribute to understanding and applying self-financing methods in the business environment.

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