This paper analyzes the evolution of the main theories regarding the capital structure and the related impact on risk and corporate performance. The capital structure is a dynamic process that changes over time, depending on the variables that influence the overall evolution of the economy, a particular sector, or a company. It may also change depending on the company's forecasts of its expected profitability, capital structure being, in fact, a risk-return compromise. This study contributes to the literature by investigating the drivers of capital structure of the firms from the Romanian market. For the econometric analysis, we applied multivariate fixed-effects regressions, as well as dynamic panel-data estimations (two-step system generalized method of moments, GMM) on a panel comprising the companies listed on the Bucharest Stock Exchange. The analyzed period, 2000-2016, covers a cycle with significant changes in the Romanian economy. Our results showed that leverage is positively correlated with the size of the company and the share price volatility. On the other hand, the debt structure has a different impact on corporate performance, whether this calculated on accounting measures or seen as market share price evolution.

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This study aims to investigate the potential factors of influence on corporate financial performance, by using the panel data regression analysis. The research was employed for a sample consisting of 40 companies listed on the Bucharest Stock Exchange, over the period 2010-2012. Corporate financial performance considered as the dependent variable was proxied through return on assets, return on equity, and Tobin’s Q ratio. There were selected the following factors that could influence corporate financial performance: capital structure, firm size, and corporate social responsibility involvement. Likewise, several control variables have been introduced: structure of the ownership and institutional investors. The results show a strong negative relationship between corporate financial performance and debt to equity ratio. Also, there has been revealed a positive influence of the company size on performance, although weak. Furthermore, the relationship between financial performance and social performance has been statistically validated, both using accounting and market ratios.

Worldwide corporate cash holdings have significantly increased and have become an important tool for managers. This study explores the factors that influence firms’ behavior regarding cash holdings and the signal that financial conservatism is sending to potential investors. Our data consists in annual observations collected through the Reuters Eikon platform. It includes companies listed on the Bucharest Stock Exchange, the investigated period being 2005-2014. The econometric analysis employs multivariate regression for an unbalanced panel data, using the OLS technique. The results show a positive correlation of cash holdings with the value registered by this indicator in the previous period, fact that might be interpreted as an attempting of the companies to maintain a target level of cash. Also, the results showed a non-linear relationship between leverage and cash holdings, while the tangible assets determine a negative correlation. As regards firm size and ownership concentration, the correlations were not statistically validated.