Factors influencing the structure of the Russian companies' capital

2020 ◽  
Vol 26 (7) ◽  
pp. 1647-1660
Author(s):  
O.N. Likhacheva ◽  
A.S. Belikevich
Keyword(s):  
Correlation Analysis ◽  
Capital Structure ◽  
Systems Approach ◽  
Empirical Studies ◽  
Factors Influencing ◽  
Oil Contracts ◽  
Economic Landscape ◽  
Relationship Of ◽  
Trade Wars ◽  
The Capital Structure

Subject. In the uncertain market environment, the optimal structure of capital is getting more important because it influences the competitiveness of a firm, its financial sustainability and solvency and, consequently, a success. Herein we dwell upon the hypothesis presuming the existence of capital structure determinants. Objectives. We review empirical studies on the subject, analyze determinants of the Russian companies’ capital structure. Methods. The study is based on the systems approach and methods of statistical analysis. Results. It is necessary to monitor how capital is shaped and formed. We investigated proceedings on factors influencing the capital structure and discovered relevant hypotheses, carrying out the correlation analysis of such factors. Conclusions and Relevance. It is especially important to examine factors influencing the capital structure, and find the appropriate format for the economy struggling through the crisis. The coronavirus pandemic unavoidably reshapes the global economic landscape, which has already been under the pressure of deglobalization processes (trade wars, repudiation of oil contracts). The correlation analysis did not reveal any relationship of the variables in question (the company’s age, ROE, ROA, MOEX, key rate, GDP, PPI) and the capital structure. Further research should be devoted to other factors and consider the unreasonableness and psychological background of managers’ behavior who make decisions concerning the capital structure.

scholarly journals Capital Structure Choice in SMEs: Evidence from Kazakhstan

2019 ◽  
Vol 2 (2) ◽  
pp. 77-87
Author(s):  
Samal Kokeyeva ◽  
Ainagul Adambekova
Keyword(s):  
Capital Structure ◽  
Panel Data Analysis ◽  
Empirical Studies ◽  
Economic Activities ◽  
Industry Group ◽  
Factors Influencing ◽  
Industry Affiliation ◽  
The Impact ◽  
The Capital Structure

Background - The article examines the factors influencing the decision on the company's capital structure. Along with the standard factors of the company, we also analyze the impact of the industry affiliation of the company on its capital structure. Purpose - to test standard firm factors and industry affiliation of firms affecting the capital structure of SMEs. Design/Methodology/Approach – the non-financial firms in Kazakhstan with all types of economic activities for 2015-2018 under consideration. In order to study the determinants of capital structure such as asset tangibility, size, growth, liquidity, profitability across the industry group of SMEs for non-financial SMEs in Kazakhstan the authors use panel data analysis. Findings - The results indicate that the main factors influencing the process of capital structure management in Kazakhstan SMEs are asset tangibility, size and profitability.  It was confirmed that sectoral implications also affect the long-term debt and total debt of SMEs. Research limitation - it is necessary to provide further research concerning this topic. It is needed to study the capital structure of SMEs in the long term and across multiple countries, which will give us a more accurate concept of decisions on the capital structure taken in companies. Originality/value - the study of capital structure determinants of SMEs in Kazakhstan was not conducted yet. The empirical analysis in many aspects gives the same results as other related studies in emerging markets.  However, the size has a negative relation to the capital structure, which does not correspond to most empirical studies. 

scholarly journals An analysis of factors influencing the capital structure of small, medium and micro enterprises : a growth and survival perspective

2018 ◽  
Author(s):  
◽  
Zunckel Sharon
Keyword(s):  
Capital Structure ◽  
Empirical Studies ◽  
Firm Level ◽  
Growth And Survival ◽  
Factors Influencing ◽  
Kwazulu Natal ◽  
Survival And Growth ◽  
Retained Earnings ◽  
Micro Enterprises ◽  
The Capital Structure

In South Africa, there is a need for small, medium and micro enterprises (SMMEs) to become established and be sustainable. These organisations play a crucial role in the economy of South Africa, as well as across the globe. Empirical studies have acknowledged the contribution of SMMEs to the economy, as well as to the gross domestic product. However, the failure rate of these firms has also been emphasised in the same studies. The lack of finance has been identified as one of the contributing factors towards the discontinuance of small firms, hence, managing capital is an importance task for organisations. Managers need to understand the capital structure of the firm in order to make the best decisions regarding the finances of the firm. The growth of SMMEs is also crucial to all economies around the world. Despite many empirical studies on capital structure decisions in large firms, minimal studies have investigated the capital structure decisions in SMMEs. Therefore, this study is expected to shed more light on the capital structure of SMMEs and enlighten owners/managers on the importance thereof. The aim of this study was to identify the factors influencing the capital structure in terms of the survival and growth of SMMEs in KwaZulu-Natal. The study addressed the following primary questions: what factors influence the capital structure of small, medium and micro enterprises in Durban, KwaZulu-Natal? Furthermore, what is the influence of the capital structure on the survival and growth of small, medium and micro enterprises in Durban, KwaZulu-Natal? The study used a quantitative research design and was cross-sectional in nature. A survey questionnaire was the primary data collection tool utilised. The target population was 204 SMMEs from the retail and wholesale sectors. A convenience sampling method was adopted which resulted in a sample size of 136, with 103 responses received. The Partial Least Squares Structural Equation Modelling 5.0 software was utilised to determine the statistical results. The findings revealed that both managerial and firm-level factors influence the capital structure of SMMEs. Managerial factors included individual goals and financing preferences of the owner/manager, network ties, attitude to debt, asymmetric information and maintaining control; whilst the firm-level factors were size of the firm, profitability and firm age. The findings also revealed that personal savings was the most important financing choice at the initial phase of the firm, however once the firm was established, retained earnings was utilised more than any other source of finance. Retained earnings was also revealed to have a significant influence on the growth and survival of small, medium and micro enterprises

scholarly journals Is There Any Relation between Intellectual Capital and the Capital Structure of a Company? The Case of Polish Listed Companies

e-Finanse ◽  
2015 ◽  
Vol 11 (4) ◽  
pp. 23-33
Author(s):  
Monika Bolek ◽  
Katerina Lyroudi
Keyword(s):  
Capital Structure ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Equity Capital ◽  
Warsaw Stock Exchange ◽  
Relationship Of ◽  
The Relationship ◽  
A Company ◽  
The Capital Structure

Abstract This study investigates the relationship of the intellectual capital of a company (proxied by its intangible assets), with leverage and equity and capital structure. Our empirical results indicate that there is a negative relation between the intellectual capital (intangible assets) of a company and its leverage based on the Warsaw Stock Exchange main market and NewConnect alternative market. Moreover, the equity capital is found positively related to the level of intangibles in each of the two markets. These results support the thesis that intellectual capital (intangible assets) influences the capital structure of a company.

scholarly journals Capital structure, corporate governance, and the effect of Sarbanes-Oxley

2019 ◽  
Vol 17 (1) ◽  
pp. 166-172 ◽  
Author(s):  
Mark Bertus ◽  
John S. Jahera Jr. ◽  
Keven Yost
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Agency Theory ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Agency Relationship ◽  
Legislative Action ◽  
Sarbanes Oxley ◽  
Relationship Of ◽  
The Capital Structure

The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to the capital structure decisions of corporations which have previously been shown to be related to agency measures and corporate governance. It is the objective of this research to examine the capital structure of U.S. firms as they relate to corporate governance measures and to determine the effect, if any, of Sarbanes-Oxley.

scholarly journals DETERMINAN STRUKTUR MODAL DAN NILAI PERUSAHAAN PERTAMBANGAN PASCA UU NOMOR 4 TAHUN 2009

2017 ◽  
Vol 19 (1) ◽  
pp. 23
Author(s):  
Sumani Sumani
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Institutional Ownership ◽  
Negative Influence ◽  
Managerial Ownership ◽  
Company Size ◽  
Mining Companies ◽  
Size Growth ◽  
The Capital Structure

The aim of research is to know the effect of profitability, company size, growth, business risks, managerial ownership and institutional ownership on the capital structure as well as the influence of capital structure to value mining companies after the implementation of Law No. 4 of 2009 on Mineral and coal's Mining. The research carried out to test the hypothesis based on theoretical and empirical studies. The study population is a mining company listed on the Indonesia Stock Exchange, with a population of 36 company members. The sampling method was using purposive sampling techniques and acquired 11 companies in the study period of six years, from 2009 to 2014. Multiple and simple regression analysis techniques were used according to the research objectives to be achieved. Regression models of this study were not violation classic assumption which includes multicollinearity, autocorrelation and heteroscedasticity. Hypothesis testing results showed the variables of profitability, business risk, managerial ownership and institutional ownership have negative effect on the mining company's capital structure.  However, company size, growth and asset structure not significant on the capital structure. On the other side, Capital structure significantly negative influence to the value of mining companies after the implementation of Law No. 4 of 2009.

scholarly journals Enterprise capital - Definition, theory and determinants of the structure

2021 ◽  
Vol 9 (6) ◽  
pp. 29-33
Author(s):  
Marcin Walczak
Keyword(s):  
Capital Structure ◽  
Balance Sheet ◽  
Optimal Structure ◽  
Main Research ◽  
Common Definition ◽  
Risk Appetite ◽  
Universal Approach ◽  
Definition Of ◽  
Relationship Of ◽  
The Capital Structure

Purpose of the study: The main goal of the article is to define the company's capital, the concept of which in the literature is insignificant and broad. The subject of the research is also the characteristics of the capital structure and the factors that determine it. Methodology: The main research method was a critical review of the literature in the field of shaping the capital structure of enterprises, also in the perspective of the evolution of the theory of the optimal capital structure and the factors determining it. Main findings: The most common definition of capital describes this concept as a source of financing for the activities of an enterprise, and therefore equates it with the balance sheet concept of liabilities. The sources of origin of funds financing business activities forces the managers to search for their optimal structure ensuring the proper relationship between the planned profit and the acceptable level of risk. The literature presents many theories of capital structure and factors shaping it. When shaping the share of equity and borrowed capital in the total of liabilities, one should take into account the business sector of the enterprise, its environment and the risk appetite of the managers. Application of the study: The presented attempt to define the company's capital is in line with the considerations on this subject so far and aims to standardize this concept in the literature. The cross-section of the theory of capital structure allows for a historical approach to this issue and confirmation of the multidimensionality of the presented issues. The presented factors shaping the capital structure of enterprises specify the areas on which managers should focus when looking for an optimal relationship of equity and foreign capital. Originality/Novelty of the study: The issue of defining capital and its optimal structure is not new in the literature. However, it requires permanent analysis, which is conditioned by the volatility of macroeconomic and microeconomic conditions. Difficulties in a universal approach to this subject also force detailed research in specific industries and economic conditions.

Factors determining the profitability of equity in small and mediumsized enterprises in Poland / Czynniki determinujące rentowność kapitału własnego w małych i średnich przedsiębiorstwach w Polsce

Management ◽  
2013 ◽  
Vol 17 (1) ◽  
pp. 185-198 ◽  
Author(s):  
Janina Jędrzejczak-Gas
Keyword(s):  
Linear Regression ◽  
Correlation Analysis ◽  
Capital Structure ◽  
Equity Capital ◽  
Return On Equity ◽  
Differentiation Method ◽  
Financial Position ◽  
Factors Influencing ◽  
Return On Sales ◽  
The Impact

Summary The equity capital profitability indicator is one of the basic measures of the financial position of the company. It is considered to be one of the most synthetic evaluation metrics of the companies activity. It’s level is influenced by the overall economic phenomenons taking place in the company. The purpose of this article is to identify factors influencing the return on equity of small and medium-sized enterprises and to examine the strength and direction of the impact of these factors on the level of ROE based on Du Pont model. To accomplish this objective were used three different methods: correlation analysis, deterministic (differentiation) method and the method of linear regression. The correlation coefficient analysis shows that trends in changes of return on equity and return on sales were strongly related. Trends of changes in return on equity and asset rotation (the turnover) were moderately similar. Trends of changes of return on equity and the capital structure were moderately dissimilar. The method differentiation method allowed to determine that, in most years of the period, both in small and medium-sized enterprises, the strongest factor affecting the change in return on equity was the return on sales. In the consideration of β, both small and mediumsized enterprises the key importance has the profitability of sales.

scholarly journals Contributing Factors of Capital Structure: A Case of Non-Financial Companies Listed at KSE 100

2018 ◽  
Vol 4 (2) ◽  
pp. 127-133
Author(s):  
Lala Rukh ◽  
Sangeen Khan ◽  
Hazrat Bilal
Keyword(s):  
Capital Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Hierarchy Theory ◽  
Contributing Factors ◽  
Leverage Ratio ◽  
Time Period ◽  
Relationship Of ◽  
The Capital Structure

The current study has taken the firms listed on KSE (Karachi Stock Exchange) now called Pakistan stock exchange. The data for the said purpose is collected for five years of time period from 2005 to 2010. The results obtained demonstrate that all the selected variables under study shows a highly significant impact on the determinants of capital structure except the tangibility of the asset.  The insignificant relationship of tangibility with the capital structure supports the financing hierarchy theory.  While the Growth, Size and profitability shows a significant and negative relationship with leverage. The negative relationship of growth shows that higher the growth of the firms lower will be the leverage maintained by the firm. Similarly, firms with smaller size show that such firms prefer high leverage as compared to firms of larger size. The results reveal that higher the profitability of the firm lower will be the leverage ratio. While the positive relationship of the volatility of the earnings states that firms with higher risks has high leverage ratio. Overall a detailed description and impact of the different variables on leverage is provided in the current study.

scholarly journals Econometric analysis of the capital structure of oil and gas companies in Russia

2021 ◽  
Vol 20 (4) ◽  
pp. 624-644
Author(s):  
Irina V. FILIMONOVA ◽  
Anna V. KOMAROVA ◽  
Anastasiya V. CHEBOTAREVA
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Debt Ratio ◽  
Gas Industry ◽  
Factors Influencing ◽  
Oil And Gas Companies ◽  
Significant Factors ◽  
The Capital Structure

Subject. The article addresses the capital structure of Russian oil and gas companies and key factors, influencing the equity to debt ratio. Objectives. The paper aims at the comprehensive review of the capital structure of Russia's largest oil and gas companies from 2010 to 2019, revealing the significant factors of its formation and transformation, assesses the impact of sanctions, imposed on Russia, on the equity to debt ratio in the oil and gas industry. Methods. The study rests on the combination of methods of scientific knowledge and financial, economic, and econometric analysis of panel data with fixed and random effects. Results. We unveil patterns of changes in the equity to debt ratio at the level of the oil and gas industry as a whole and with differentiation for individual companies, for 2010–2019. The econometric models that were built and tested based on panel data enabled to establish functional relevance and identify a set of significant factors, which included the company size, profitability of equity, and revenue from international supplies. Conclusions. Based on the findings, in the future, it is advisable to expand the list of possible factors influencing the capital structure, by adding all sorts of risks, conditions and sources of attraction of both the debt capital and equity, and the specifics of company operation. The determination of the optimal debt-to-equity ratio for the largest oil and gas companies in Russia, taking into account individual economic, management, and strategic characteristics, can be a separate component of the study.

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