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 111
- Downloads 0
The Principle of Purposefulness in the System Dynamics With the Approaches of Behavioral Economics
The article presents the theoretical definition of the purposefulness principle in the system dynamics, taking into account the approaches of behavioral economics, prospect theory and framing effect. There has analyzed t...
Regulation of the Accounting Issues of the Rental Operations With the Fixed Assets According to the Changes in Legislation
The article examines theoretical and methodological issues on accounting of the certain rental operations of fixed assets from an individual in accordance with the provisions of the Tax Code of Ukraine; the comparability...
Theoretical and Practical Aspects of Ensuring the Effectiveness of Innovation Activities of Banks
The aim of the article is to study the theoretical foundations and development of scientific and practical recommendations to ensure the effectiveness of innovation as a complex multifaceted banks process. The article st...
Economic Content of Mortgage Insurance
As the foreign experience shows, insurance, along with other methods of credit risk management plays an important role and could be a catalyst for development of mortgage lending. For the effective functioning of the mor...
Optimization of Organizational and Engineering Providing Mining Enterprise Target Production Capacity
Basic resources factors that influence production capacity of enterprise are considered in the article. Expediency of raw minerals factor calculation in the criterion of target capacity estimation is grounded. Economic-m...