Optimization of the capital structure of an agricultural company in the Czech Republic

The topic of optimizing capital structure is very important for a company to work efficiently and reliably. It is important for every company to optimize everything so that they have the highest possible efficiency. Entrepreneurs also try to make this optimization last them as long as possible. Therefore, the aim of this paper is to determine the optimal capital structure of an agricultural company operating in the Czech Republic. The base source of data is the closing data of individual agricultural companies from the Albertina database of Bisnode. More than 9,000 agricultural enterprises operating in the given sector of the national economy in the Czech Republic are recorded in this data set. The calculation of the WACC method and the level of debt of individual agricultural companies are used. Subsequently, the equation for calculating the cost of capital is determined using power regression. Here we also obtain the value of reliability, which in this particular case is not ideal, but still reasonable. A line chart is used to determine the optimal interval for the agricultural company. The optimal debt interval comes out to 20 to 25%, at which the cost of capital is declared to be from 22 to 24%. If agricultural companies had higher or lower debt ratios, it would be inefficient for the enterprise.

Dividend Policy as Moderating Variable to the Consumer Goods Company on the Indonesia Stock Exchange

The capital market in Indonesia includes many companies from several sectors. One company that cannot be separated from the Indonesian stock market is a consumer goods company. The research aimed to analyze the effect of profitability and capital structure on the company with dividend policy as moderating variable to the consumer goods companies registered on the Indonesia Stock Exchange in the period of 2014-2018. The population in the research was consumer goods companies with subsector of food and drink, cigarette, cosmetic pharmacy, and household goods and appliances. The research applied purposive sampling and obtained 15 companies with 5 years of observation or around 75 samples. Then, the data were analyzed using Smart PLS 3.0. The analysis result shows that profitability, capital structure, and company size positively and significantly influence the company value. However, dividend policy cannot moderate the effect of profitability and capital structure on the company value. The dividend policy can moderate the effect of company size on the company value. Then, profitability, capital structure, and company size influence the company value of 88,6%, while the other factors influence the rest. Investors should decide on issuers with high profitability above 5%, the optimal capital structure with the debt-to-equity ratio between 0,8-1,2, and total assets above five trillion Rupiah.

METHODS OF CORPORATE CAPITAL CAPITAL STRUCTURE OPTIMIZATION

When forming the optimal capital structure, the choice of methods, approaches, tools is important, which is determined by a set of initial conditions, the need to perform the tasks, achieving results / strategic guidelines. The purpose of the article is to systematize scientific approaches to optimize the capital structure, to clarify the impact of factors on the capital structure of the corporation, which will serve as a basis for ensuring the optimal level of capital structure. As a result of the research, the views of scientists on the optimization of capital structure are systematized, the key aspects of the three main approaches to such optimization are singled out and described. The approaches used in determining financial leverage are described. The expediency of determining financial leverage through the ratio of EPS – earnings per share and EBIT – earnings before interest and taxes is substantiated. The most common methods of capital structure optimization are identified: the method of capital expenditures (the method of minimizing the weighted average cost of capital); the method of determining the effect of financial leverage or the method of maximizing the level of financial profitability; method of determining the complex operational and financial leverage; EBIT-EPS valuation method, Du Pont method, operating profit method and adjusted present value method. Their features, advantages and disadvantages of use are described. The factors influencing financial leverage are systematized, the positive or negative influence of each of the determined factors on financial leverage is determined. A matrix of factors that determine the optimal capital structure in terms of the environment (internal or external) and the implementation of financial policy (at the strategic or operational-tactical levels).

Effect of Leverage on Profitability and Share Return with Intervening Asset Growth

Fundamental factor analysis is important to determine the company's performance. The purpose of this study is to determine the effect of leverage on profitability & stock prices through Asset Growth. The population of 664 issuers used 300 purposive samples covering all sectors on the 2011-2019 BEI. The research method uses SEM-Smart PLS path analysis. The results in group I (DAR <50%) DAR had a positive effect on AG; negative to ROA; and does not affect ROE; Meanwhile, AG affects ROE&PBV. The result of an indirect relationship AG mediates DAR to RS through ROE, but AG does not mediate DAR to RS through PBV. Shows an increase in debt increases asset growth and dividends, and if the increase in asset growth without increasing debt will increase dividends and stock prices. The results in group II (DAR>50%) DAR had a negative effect on AG&ROA, but did not affect ROE. While AG affects PBV, but does not affect ROE. The result of an indirect relationship AG mediates DAR to RS through PBV, but AG does not mediate DAR to RS through ROE. It shows that an increase in debt will reduce asset growth but will not affect dividends and vice versa, while an increase in asset growth will increase stock prices. This finding proves that the optimal capital structure is effective in improving company performance on the Indonesia Stock Exchange. Companies that have low debt and experience asset growth tend to produce high profitability and their share prices increase

The behavior of capital structure: evidence from fast calibrated additive quantile regression

In finance, capital structure decisions are crucial due to their impact on the value of a firm. Some theories assert that the value of a firm is irrelevant to those decisions. However, there is a growing literature that criticizes this idea. Those studies are constructed on some modern theories which called trade-off theory, agency cost theory, signaling theory, and pecking order theory. This paper investigates the relationship between optimal capital structure and capital structure components. The annual data gathered from 195 firms traded in Borsa Istanbul for the period 2011-2020 is used. The fast calibrated additive quantile regression approach is chosen because of its superior properties. In that method, there is not a strong assumption about the functional form of the relationships between the dependent variable and the explanatory variables. The results indicate that the relationships between the debt ratios and the capital structure components differ for each quantile and these relations are nonlinear. Furthermore, evidence is found that the relationships might be explained with the modern theories of capital structure.

Correlation-and-regression analysis of the influence of macroeconomic factors on capital structure of Russian corporations under crisis conditions

The study reveals the influence of macroeconomic factors on decisions about the optimal capital structure formation under financial globalization, in view of ever-changing factors of the external economic and geopolitical environment. The study is aimed at empirical testing of hypotheses on how the level of financial leverage of corporations depends on traditional determinants during and after the financial crisis under the emerging market conditions in Russia. The study deals with a large data set of 49 public joint stock companies from 7 leading Russian economic sectors for the period from 2011 to 2017. According to the correlation-and-regression analysis results (1) the use of traditional theories of capital structure under the conditions of current financial globalization in a country with a developing economy proves to be ineffective for the optimal capital structure formation (2) the corporate capital structure formation is strongly influenced by macroeconomic factors, which is most evidently manifested during and after the crisis (3) the financial crisis exerts a strong influence on the corporate capital structure (4) the determinant of stock market development has a significant influence on leverage and plays a prominent role in making financial decisions after the financial crisis.

КОМПАНИЯ КАПИТАЛЫ ҚҰРЫЛЫМЫНЫҢ ТЕОРИЯЛЫҚ НЕГІЗДЕРІ

Капитал компании нужен для осуществления коммерческой деятельности и создания добавленной стоимости для заинтересованных сторон, включая экономику. Нужно оценить, как изменился взгляд на структуру капитала компании с теоретической точки зрения, чтобы найти, какие концепции и теории, если таковые имеются актуальны сейчас. Есть также новые определения и задачи, переходящие от определения и изучения оптимальной структуры капитала компании к устойчивому финансированию, таксономии, а также устойчивости структуры капитала компании. Потому цель этого анализа: установить имеющиеся главные теории, которые влияют на структуру капитала компании и анализирующие её и провести изучение теоретический сдвиг теорий, который был основан на потребностях. Авторы определили структуру капитала компании и определили, что число научных публикаций существенно увеличилось, что подтверждает необходимость переоценки теоретических основ теорий структуры капитала, также помогает найти тенденции, все еще относительные и возникающие в результате теоретические и практические аспекты структуры капитала компании. Компанияның капиталы коммерциялық қызметті жүзеге асыру және мүдделі тараптар үшін, соның ішінде экономика үшін қосымша құн құру үшін қажет. Қазіргі уақытта қандай тұжырымдамалар мен теориялар бар екенін табу үшін компанияның капитал құрылымына деген көзқарас теориялық тұрғыдан қалай өзгергенін бағалау керек. Сондай-ақ, компания капиталының оңтайлы құрылымын анықтау мен зерттеуден тұрақты қаржыландыруға, таксономияға, сондай-ақ компания капиталы құрылымының тұрақтылығына ауысатын жаңа анықтамалар мен міндеттер бар. Сондықтан бұл талдаудың мақсаты: Компания капиталының құрылымына әсер ететін және оны талдайтын негізгі теорияларды құру және қажеттіліктерге негізделген теориялардың теориялық ауысуын зерттеу. Авторлар компанияның капитал құрылымын анықтады және ғылыми басылымдардың саны едәуір артқанын анықтады, бұл капитал құрылымының теорияларының теориялық негіздерін қайта бағалау қажеттілігін растайды, сонымен қатар компанияның капитал құрылымының салыстырмалы және туындайтын тенденцияларын табуға көмектеседі. Including the economy, the company's capital is needed to carry out commercial activities and create added value for interested parties. It is necessary to assess how the view of the company's capital structure has changed from a theoretical point of view to find which concepts and theories, if any, are relevant now. Some new definitions and tasks move from determining and studying the optimal capital structure of the company to sustainable financing, taxonomy, as well as the sustainability of the company's capital structure. Therefore, the purpose of this analysis is to establish the existing main theories that affect the capital structure of the company and analyze it and conduct a study of the theoretical shift of theories that were based on needs. The authors determined the company's capital structure and determined that the number of scientific publications has increased significantly, which confirms the need to re-evaluate the theoretical foundations of capital structure theories, also helps to find trends that are still relative and the resulting theoretical and practical aspects of the company's capital structure.