FINANCING THE NEEDS AND GROWTH OF COMPANIES BY ISSUING CORPORATE BONDS

Abstract

Financing through the capital market has many advantages over other types of external financing companies such as avoiding dependence on bank credits, access to a wider base of investors, collecting a relatively large amount of asset as well as longer maturity dates. The companies need to secure additional financial assets so they can maintain the current liquidity, as well as for their development and growth. These assets can be taken from internal as well as external financial sources. The purpose of this paper is to analyze the most common source which Macedonian companies use for financing for their current and developmental activities. Special emphasis is placed on how familiar Macedonian companies are with the process of bonds issuance for financing their working processes and how much they use it. The basic instrument for data collection was a questionnaire that was designed in three categories with 25 questions in order to be able to collect information about which is the most common financial source that surveyed companies prefer and how many of them are familiar and use the process of issuing corporate bonds. The results indicates that Macedonian corporate bonds market is undeveloped which is verified by the fact that company’s managers and owners are unprepared and unfamiliar with the advantages and procedure of bond issuance.

Keywords

• issuing bonds
• financing sources
• bank credits
• saving instrument.