THE CAPITAL PRICE INFLUENCING FACTORS IN THE REPUBLIC OF SRPSKA
THE CAPITAL PRICE INFLUENCING FACTORS IN THE REPUBLIC OF SRPSKA

Summary/Abstract: Focus of the paper is on the capital price in the Republic of Srpska, which is composed of the price of shareholder capital and the price of debt. The purpose of the research is to compare the capital price before and after beginning of the financial crisis, that corresponds to the comparison of the interest rates levels before and after the establishment of development funds. The two hypotheses are going to be proven. The first one is that market share of developing funds has a tendency of increasing as the growth rate of the country is decreasing. The second hypothesis is that with introducing the development funds the average interest rate decreases and furthermore the lowest interest rate boundary in the economy is moved down. In conclusion, we are going to display the results of proving hypothesis and give the overview of loans conditions and capital price structure in the country.

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