THE IMPACT OF THE VALUATION OF ASSETS ON THE COMPANY'S PROFITABILITY

SIMINICA Marian, University of Craiova, Craiova, Romania

CIRCIUMARU Daniel, University of Craiova, Craiova, Romania

CARSTINA Silviu-Valentin, University of Craiova, Craiova, Romania

Abstract:
The research paper which has the title „The impact of the valuation of assets on the companys profitability” was achieved having as main objective to highlight how an enterprise valuation of assets directly influences the level of its profitability. This was achieved by dividing the relevant assets of agro-industrial companies in Dolj County, is the approach used in evaluating the income, income capitalization method is the method used. The date on which the assessment is held September 21, 2015, therefore this is the date of the assessment. We also emphasized the subjective nature of the evaluation in general and especially of the evaluation method based on capitalization of income, which also can lead to favorable or unfavorable change in the profitability of the company.

Keywords: profitability, valuation, income approach, capitalization

JEL Classification: G00, C00, K1

Volume: 68, Issue: 2

Pages: 129 - 143

Publication date: September, 2016

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/68209siminica&circiumaru&carstina.pdf

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