Optimal capital taxation in an economy with innovation-driven growth

This paper investigates optimal capital taxation in an innovation-driven growth model. We examine how the optimal capital tax rate varies with externalities associated with R&D and innovation. Our results show that the optimal capital tax rate is higher when (i) the “stepping on toes effect” is smaller, (ii) the “standing on shoulders effect” is stronger, or (iii) the extent of creative destruction is smaller. The optimal capital tax rate is more likely to be positive when there is underinvestment in R&D. Moreover, the optimal capital tax rate and the monopolistic markup exhibit an inverted-U relationship. By calibrating our model to the US economy, we find that the optimal capital tax rate is positive, at a rate of around 6.6%. Finally, we consider a number of extensions and find that the result of a positive optimal capital tax is robust.

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).

Accumulation and obsolescence of research knowledge

In this paper we study how the scientific production of a representative researcher develops over his/her career. Using Pontryagin’s maximum principle we derive the optimal capital accumulation over the life cycle of a scientist. In particular, we are able to identify two regimes of human capital accumulation (say intensive versus normal) and to characterize their optimality depending on the initial human capital level. The paper includes a formal proof of the negative impact of the obscolescence rate as well as the discount rate on human capital production and we show that this reduction is largest at earlier ages.

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.