PHILOSOPHY OF GENERAL CORPORATE FINANCING

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. Special attention has been drawn on capital management practices in Bulgarian companies recognizing those practices’ constant need of improvement and development.