Comparative Analysis of Leasing's Evaluation as a Method of Financing Investments in Greek Agribusiness Sector Before and During Greek Economic Crisis
Journal of Business and Economic Development
Volume 2, Issue 2, May 2017, Pages: 79-86
Received: Oct. 27, 2016;
Accepted: Dec. 30, 2016;
Published: Jan. 20, 2017
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Apostolos D. Zaridis, Business Administration, Hellenic Open University, Patras, Greece
Financing for acquiring assets in Greek agribusiness sector is very common and supports Greek agribusiness sme’s production. Purpose of this study is the comparative analysis of leasing's evaluation as a method of financing in order to acquire assets used directly in the production process of a business of secondary Greek agribusiness sector or even vertically integrated business. Thus, research was held in April of 2006 and December of 2012, collecting proper data from Greek banking sector and considering Tax Legislation. Decision for the selection of the financial practices in the event of such an investment should be made after taking into consideration several factors. Proper financial evaluation of future investment is necessary, while it’s too necessary to be compared the financing choices that are given in Greece. Considering Tax Legislation, Banking Practices, and Law on Leasing, financing methods were compared in two different reference periods, before and during Greek economic crisis. Avoiding generalizations, typical examples are given, showing that leasing preceded against borrowing, considering conditions prevailing in Greece at these two reference periods. But decision making for selection of financing method is affected by factors, which may lead to either correct or incorrect conclusions for firm’s interests, if evaluation is not correct or there are personal interests of decision-makers in the administration. Consequently, incentives to use leasing for financing a business can be a lot, but quite important are ownership structure, nature of investment opportunities, business risk and tax status.
Apostolos D. Zaridis,
Comparative Analysis of Leasing's Evaluation as a Method of Financing Investments in Greek Agribusiness Sector Before and During Greek Economic Crisis, Journal of Business and Economic Development.
Vol. 2, No. 2,
2017, pp. 79-86.
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