Criteria for Optimizing the Capital Structure for Sustainable Economic Development
V. Yu. Pripoten, I. Ye. Alferova
Donbass State Technical University
Annotation: The article analyzes the criteria for optimizing the capital structure of an enterprise in order to ensure sustainable economic development. Factors affecting the structure of the financing of the enterprise’s property have been systematized. The main optimization criteria are maximizing profitability, minimizing the cost of attracted resources, minimizing risks and increasing the market value of the enterprise. The result of a compromise on combining these criteria is the optimal capital structure for a particular enterprise. At the same time, subjective factors have a big influence: the financial mentality of the manager (influencing the choice of the approach to the formation of property – aggressive, compromise or intermediate state between them), the mentality of the owners and the dependence of the company’s value on quotations on the stock exchange (affecting the company’s dividend policy), company image, asymmetric information. The relationship between sustainability indicators and property financing policy has been studied. According to several enterprises, the influence of dividend policy on the cost of capital and market capitalization of the firm was investigated.
Keywords: optimization of capital structure, sustainable economic development, weighted average cost of capital, financial stability, property formation policy, profitability, dividend policy, market capitalization.
Pages: 133-143.
Link for citation: Pripoten, V. Yu.; Alferova, I. Ye. Criteria for Optimizing the Capital Structure for Sustainable Economic Development. – Text : electronic. – In: Economics of Civil Engineering and Municipal Economy. – 2018. – Vol. 14, N 2. – Р. 133-143. – URL: https://donnasa.ru/publish_house/journals/esgh/2018-2/06_pripoten_alferova.pdf (date of access: 27.07.2024). (in Russian)
Vol. 14, N 2 (2018)Journal: Economics of Civil Engineering and Municipal Economy
Publish house: Donbas National Academy of Civil Engineering and Architecture