The Conception of Structure of Capital in the Modern Finance Theory
Journal Title: Бізнес Інформ - Year 2016, Vol 4, Issue
Abstract
The article offers a critical look at the usage of notion of capital structure in the post-Soviet countries. This notion was adopted in formalistic manner, without full understanding of the ideas and conceptions, on which it is based. As a consequence, the notion of structure of capital is often confused with the structure of assets or the financial structure. The article systematizes key features of the conception of structure of capital, relevant to empirical studies, and shows the relationship of the specified notion with the financial conception of capital. Importance of considering capital from an investor perspective has been determined, because this is consistent with theories of valuation of company and the capital value. Impossibility of simplifying the optimization of structure capital down to calculation of a set of accounting ratios has been substantiated. The conclusions of the article also support the idea of simultaneous use of balance and market indicators of structure of capital that can provide more reliable research results and ease comparison of them with other findings.
Authors and Affiliations
Demid Chernenko
Keywords
Related Articles
- EP ID EP101557
- DOI -
- Views 99
- Downloads 0
Concept of Flexibility in the Context of Problems of Employees' Dismissal
The paper proposed to determine the influence of external and internal factors that impact business operations, and hence the dismissal of workers, using the concept of flexibility. The main internal factors, based on wh...
The Ways Of Improvement Of The Government Regulation Of Domestic Enterprises' Investment Activity
The author has described the main investment trends in Ukraine and indentified prospective areas of the present investment activity of domestic enterprises government control system.
The Need for Improved Control of Banks on Financial Statement Presentation
The article investigates the consequences of distorted reporting of Ukrainian banks. The financial statements of liquidated Ukrainian banks, in which was introduced the temporary administration, was analyzed. Revealed th...
Determining the Level of Obsolescence in the Technological Audit of Intellectual Technologies
The article is aimed to develop methodical recommendations for estimating the level of obsolescence of intellectual-innovative technologies (intellectual property objects). A detailed analysis of the existing methodical...
Main Trends and Features of Social Protection in Countries of EU
In the article it was identified the main areas of realization of social protection of disabled persons and it was considered the experience of states that are part of the EU, concerning conditions for various types of a...