Date Added: May 2010
The importance given to the problem of capital structure comes from the influence of debt on equity profitability (financial leverage) and the financial risk induced by debt. This paper is actually an analysis of the evolution of financial risk in the building sector during 2001 - 2008 on a sample of 11 enterprises in the Galati County, Romania. In this approach, the authors used information from the balance sheets of enterprises, provided by the Register of Commerce. To carry out this analysis two methods were used, which rely on the break-even point and the leverage.