engleski

The scale of internal funding

Internal financing refers to internally generated capital within a corporation. The most impressive source of internal capital is certainly the realized profit of the corporation, although depreciation should not be neglected either. The simplicity of the answer, however, overshadows, and even hides, the long and burdensome path to making a profit. In fact, profit is a feature that connects the internal financing of joint stock companies with banks, because for them, too, profitability is a determinant of the credit rating of individual joint stock companies. Thus, the scale of internal financing implies how much this form of financing of joint stock companies is theoretically respected by eminent experts and how much it is empirically accepted in practice. Regarding Croatian and world practice on internal financing, it will be presented in more detail in the following chapters. What is important is that scientific experts of Croatian and world rank such as Donaldson, Brealey, Myers, Marcus, Foley, Corbettica, Jenkinson, Orsag, Burke, DeMarz, Donaldson, Santini, etc. have registered internal funding, and in further scientific analyzes such as this is an attempt to attach more importance to this form of corporate financing.

corporations, internal financing, USA ; Japan, Canada, EU

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