The methodological instruments of the capital structure management assessment at the power-producing listed companies Dmytro Mastiuk
Journal Title: Схід - Year 2018, Vol 153, Issue 1
Abstract
The conducted research provides improvements in the indicators system of the diagnostics of the capital structure management effectiveness at the power-producing listed companies that, comparing to the others, is grounded on the analysis of the equity and debt taking into consideration the economic value-added dynamics, which, eventually helps to define issues in the capital structure management process and provide with solid recommendations for further improvement of the decision making. It is substantiated that the system of the indictors has to combine return on invested capital (ROIC), Debt-to-Equity ratio (D/E), effect of financial leverage (EFL), weighted average cost of capital (WACC) and economic value-added (EVA), which is a baseline of the defined indicators. Modification of the economic value-added makes it possible to evaluate the EVA of Equity and EVA of Debt within the capital structure. Therefore, modified EVA formula helps to understand the oscillations in the effectiveness and efficiency of the capital structure components and provide the analytical basis for the stakeholders and their decisions. Defined that, in combination with the other indicators, it is possible to understand the complexity and differentiation of the capital structure at the power-producing listed companies; the relations between owners and the entity and their interests; the mechanism of the value creation as enterprise and Equity and Debt.
Authors and Affiliations
Dmytro Mastiuk
Keywords
Related Articles
- EP ID EP462234
- DOI 10.21847/1728-9343.2018.1(153).127100
- Views 118
- Downloads 0
THE PUBLIC AND PRIVATE SECTORS OF THE ECONOMY: HISTORICAL ASPECTS OF COOPERATION
The article reviews the development of interaction between private capital and the state as a public-private partnership (PPP). The basic model of the original PPP, given their basic characteristics, considered the econo...
Development of the oil industry in the USA (Part I)
The article looks into the history of the oil and gas industry which has been dynamically developing today. Oil and natural gas as well as their processing products have a very long history of use by mankind though the h...
SACRAMENTALITY OF BIBLE IN CATHOLIC TRADITION: FROM THE COUNCIL OF TRENT TO THE SECOND VATICAN COUNCIL
The most of Christian traditions embrase the notion of sacrament (Latin: sacramenta). This notion deals with the church directives in a narrow meaning. According to Saint Augustine, the sacrament is a visible action of a...
Prognostication the competitive development of agricultural enterprises, depending on the gross output of crop production and livestock
In the competitive environment any entity should assess its own level of competitiveness for the effective functioning and assessment of prospects for the future. The article analyses the modern state of production of ag...
AGGRESSIVE TECHNOLOGIC INFLUENCE ON MASS CONSCIENCE AGAINST THE BACKGROUND OF THE EAST UKRAINIAN CONFLICT. MYTHOLOGY OF THE MILITARY PHASE
In this article the author continues his philosophical research of aggressive manipulative influence on mass consciousness, which is a basic component of the "hybrid war" Russian Federation against the Ukraine. It ident...