The relationship between the capital structure and the financial efficiency of the company`s activities
Modern approaches to assessing the cost of capital of a company in order to choose the most successful structure are considered. The SARM model for estimating the cost of equity is described in detail. The indicator of economic value added was proposed as a criterion of economic efficiency. Modern a...
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| Format: | Article |
| Language: | English |
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Publishing House of the State University of Management
2021-09-01
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| Series: | Вестник университета |
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| Online Access: | https://vestnik.guu.ru/jour/article/view/2994 |
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| _version_ | 1832541687844438016 |
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| author | D. V. Voyko A. V. Voyko |
| author_facet | D. V. Voyko A. V. Voyko |
| author_sort | D. V. Voyko |
| collection | DOAJ |
| description | Modern approaches to assessing the cost of capital of a company in order to choose the most successful structure are considered. The SARM model for estimating the cost of equity is described in detail. The indicator of economic value added was proposed as a criterion of economic efficiency. Modern approaches to assessing the value of a company are reflected, financial instruments and market indices used to assess the cost of capital of companies are studied. The hypothesis of the relationship between the capital structure and value was also evaluated and confirmed on the example of an operating oil and gas company, taking into account the actual results of its activities and industry characteristics. |
| format | Article |
| id | doaj-art-67810173d6484195a34aaf6c2c55e91e |
| institution | Kabale University |
| issn | 1816-4277 2686-8415 |
| language | English |
| publishDate | 2021-09-01 |
| publisher | Publishing House of the State University of Management |
| record_format | Article |
| series | Вестник университета |
| spelling | doaj-art-67810173d6484195a34aaf6c2c55e91e2025-02-04T08:28:09ZengPublishing House of the State University of ManagementВестник университета1816-42772686-84152021-09-010717618610.26425/1816-4277-2021-7-176-1862110The relationship between the capital structure and the financial efficiency of the company`s activitiesD. V. Voyko0A. V. Voyko1State University of ManagementState University of ManagementModern approaches to assessing the cost of capital of a company in order to choose the most successful structure are considered. The SARM model for estimating the cost of equity is described in detail. The indicator of economic value added was proposed as a criterion of economic efficiency. Modern approaches to assessing the value of a company are reflected, financial instruments and market indices used to assess the cost of capital of companies are studied. The hypothesis of the relationship between the capital structure and value was also evaluated and confirmed on the example of an operating oil and gas company, taking into account the actual results of its activities and industry characteristics.https://vestnik.guu.ru/jour/article/view/2994capital structureeconomic value addedweighted average cost of capitalmarket profitabilityoil and gas producing companiessharerisk premiuminvested capital |
| spellingShingle | D. V. Voyko A. V. Voyko The relationship between the capital structure and the financial efficiency of the company`s activities Вестник университета capital structure economic value added weighted average cost of capital market profitability oil and gas producing companies share risk premium invested capital |
| title | The relationship between the capital structure and the financial efficiency of the company`s activities |
| title_full | The relationship between the capital structure and the financial efficiency of the company`s activities |
| title_fullStr | The relationship between the capital structure and the financial efficiency of the company`s activities |
| title_full_unstemmed | The relationship between the capital structure and the financial efficiency of the company`s activities |
| title_short | The relationship between the capital structure and the financial efficiency of the company`s activities |
| title_sort | relationship between the capital structure and the financial efficiency of the company s activities |
| topic | capital structure economic value added weighted average cost of capital market profitability oil and gas producing companies share risk premium invested capital |
| url | https://vestnik.guu.ru/jour/article/view/2994 |
| work_keys_str_mv | AT dvvoyko therelationshipbetweenthecapitalstructureandthefinancialefficiencyofthecompanysactivities AT avvoyko therelationshipbetweenthecapitalstructureandthefinancialefficiencyofthecompanysactivities AT dvvoyko relationshipbetweenthecapitalstructureandthefinancialefficiencyofthecompanysactivities AT avvoyko relationshipbetweenthecapitalstructureandthefinancialefficiencyofthecompanysactivities |