Laura Giurca Vasilescu

FINANCING GAP FOR SMES AND THE MEZZANINE CAPITAL

Abstract Mezzanine capital is a hybrid instrument which combines the benefits of debt and equity and represents an alternative source in financing the start-up and expansion of SMEs. The paper analyzes the mezzanine financing instruments that include private placement instruments (private mezzanine) and capital market instruments (public mezzanine) and the level of development in the market for mezzanine financing that varies across Europe: while SMEs in some countries can choose from a wide range of different products, other countries still have ground to make up in this area. Taking into consideration the financing gap of the SMEs in EU, the mezzanine capital represent an important option for covering this gap. This instrument should be considered in the context of the international financial crisis which affects dramatically the possibilities of financing for the SMEs. Thus, the paper presents the main features and advantages offered by this hybrid financing instrument from the firms and investors’ perspective but also the main challenges.

Evaluation of Turkish Domestic and Foreign Banks By Using Financial Ratios

In banking system, being a domestic or foreign bank can be an especially important managerial success. In the literature, it has been claimed that foreign banks are more successful than domestic ones. The reason for this can be having more global knowledge and using more professional tactics in banking transactions. On the other hand, to be familiar with its societys culture can be an opportunity for domestic banks. In this study, Turkish banks have been evaluated with using financial ratios taking into consideration domestic and foreign equity. The banks have also been ranked according to success. To achieve this, principal components analysis and discriminant analysis have been applied.

Challenges and Opportunities for Romanian Firms after EU Integration

The process of integration in the European Union determines transformations and significant remodeling in the business environment. After integration, Romanian entered in a new stage and the efforts for consolidation, modernization process and changing the mentalities should be increased, taking into consideration that the integration process is first of all an internal policy problem. The impact of integration is reflected in a narrow or a wider way over all the Romanian companies, regardless the economy sectors where they activate, their capital structure or their size. The effects of this process are complex because the European integration supposes both benefits and costs and the success of adaptation to the exigencies required by the status of new member state depends on the way they are administrated at the internal level.