Modigliani-miller Theorem and its Implications on Romanian Agricultural Policies

In this paper we propose and apply three models on statistical data of some Romanian farms, to verify the action of the Miller-Modigliani theorems: Mahagaonkar- Qiu procedures that test the effects of the capital structure on the market value of the firm and the effects of the financial leverage on the weighted average cost of capital; another econometric model which tests contemporaneous and delayed effects of total debts on the market value of the firm.In order to apply Mahagaonkar- Qiu methodologies and, because of the fact that in Romanian farms there is a high heterogeneity from the point of view of the physical capital endowment and of the exploitation surfaces, we have to perform clustering analyses using artificial neural networks of Self-Organizing Maps type, based on five financial indicators of the firm.