Improving the capital structure of the enterprise
Students Name: Dopira Oksana Ivanivna
Qualification Level: magister
Speciality: Enterprise Economics
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2021-2022 н.р.
Language of Defence: ukrainian
Abstract: Dopira O. I., Yanevich N. Ya. (Supervisor). Improving the capital structure of the enterprise. Master’s thesis. – Lviv Polytechnic National University, Lviv, 2021. Achieving significant amounts of economic results from the implementation of enterprises’ activities requires a number of different conditions. However, one of the most important of these conditions is the presence of large amounts of capital in economic entities. Capital allows you to start your own business by acquiring the necessary factors of production. Capital is also needed to expand the scope of activities and increase its volume. At the same time, it is important for enterprises not only to have a sufficient amount of capital that could be directed to the implementation of their economic activities. It is also necessary to adhere to a rational relationship between the various components of capital. In particular, this applies to the proper balance between equity and debt of businesses. The low share of loan capital in the total capital of companies may indicate that these companies do not fully use the opportunities to obtain additional financial resources for doing business. On the other hand, too large a share of the loan may be a sign of unsatisfactory level of financial stability of business entities. Thus, the capital structure of companies directly determines both the efficiency and riskiness of their activities [1-3]. In view of the above, the purpose of this work is to substantiate the proposals aimed at improving the management of the capital structure of the business entity. The paper examines the economic essence and features of the process of managing the capital structure of economic entities. Analyzes of the current financial condition and assessment of the available financial capital of the researched economic entity have been performed. The selection of the external source of financing of the project of development of the researched organization is substantiated. A careful assessment of the impact of indicators of the capital structure of the studied economic entity on the profitability of this entity in accordance with the effect of financial leverage and using the DuPont model. Proper substantiation of the investment program of the firm under study in the master’s thesis has been performed. Rational financial support of the program of investment measures of the researched company and the structure of its capital, which will be invested in this program, are substantiated. The scientific novelty of this master’s qualification work is the improved methods of managing the structure of the available financial capital of the business entity in the process of selecting investment projects and substantiation of the investment program. The solution of the set tasks required the use of the following methods of cognition: generalization (when substantiating the source of financing investment measures for economic development of the enterprise); economic and mathematical modeling (substantiating the relevant parameters of the financial support of the investment program and the choice of capital structure to be invested in the implementation of this program of the researched enterprise); system analysis (when analyzing the financial condition, as well as when assessing the financial capital of the enterprise); abstraction. Key words - enterprise, capital structure, valuation, financial leverage, management. List of used literature sources. 1. Chen, S.-G. & Lin, Yi-K. (2008). An evalution method for enterprise resource planning systems. Journal of the Operations Research Society of Japan, (51(4)), 299–309. 2. Detemple, J. & Kitapbayev, Y. (20180. Optimal Investment under Cost Uncertainty. Risks, (6 (1)), 5. 3. Emelyanov, A., Kurylo, O. & Vysotskij, A. (2013). Structuring expenses of industrial enterprises in the evaluation process of its production and sales potential. Ekontechmod. An international quarterly journal, (4), 11?17.