Grinchenko V. Capital structure of corporate enterprises and directions of its optimization

The dissertation investigates theoretical and methodological foundations of capital structure and substantiation of practical recommendations for its optimization. Approaches to the definition of capital of an enterprise in terms of economic substance and reflection in the financial statements are identified and systematized. Capital structure theories have been systematized and the basic assumptions underlying these theories have been identified. The capital structure definition is investigated and the basic characteristics of capital as ownership, investment object and the forms of existence are highlighted. The direction and significance of factors influencing capital structure such as profitability. An influence of capital structure on profitability and weighted average cost of capital is determined. The speed of adjustment to a target capital structure is detected and investigated. Risk management methods for capital structure risk such as risk avoidance, reduction, transfer and hedging are substantiated. The methodology of capital structure risk limitation depending on the target minimum level of return on assets is developed and can be used by the management of the companies for strategic planning and controlling objectives in order to minimize financial risks.