The Modeling of Enterprises'Capital Structure under the Conditions of the Financial Market Globalization - PhDData

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The Modeling of Enterprises’Capital Structure under the Conditions of the Financial Market Globalization

The thesis was published by CibulskienÄ—, Diana, in November 2005, Vilnius Gediminas Technical University.

Abstract:

This dissertation paper defends a thesis that as the Lithuanian enterprises more actively participate in international contracts, the need for financing grows. In order to minimize possible microeconomic and macroeconomic loss, it is necessary to form the expediente strategy of financing; emphasizing costs of alternatives financial sources under conditions of risk and uncertainty. Analyses conducted in the thesis were sought to contribute both conceptually (by formation of systems and models of capital structure) and practically (by implementation of such systems and models) to financing of companies activities, and to maximizing of EVA. The EVA reveals the dependence of an enterprise’s profitability on the employed capital for gaining that profit. The conceptual need urges to determine the zone of effectiveness of rational capital structure, which stipulates the growth of EVA. Scientific relevance of the dissertation is the main results of the scientific study presented for public maintenance. First, one studied adequate motives under Lithuanian conditions that encourage enterprises to study the substantiation of capital structure formation. The preconditions and criteria affecting the financing decisions of Lithuanian enterprises were conceptually grounded while stressing the aspects of finance market globalization. Second, the systemic capital leverage management model was created; involves the three main ranges that affect enterprises’ activity: internal enterprise’s activity criteria, country’s macroeconomic factors and finance market globalization factors. This model allows extracting the main criteria determining the formation of enterprises’ capital leverages. Third, one has created and practically applied the model of formation of rational capital structure oriented towards the increase of the economic value added. This model enables to project the capital structure formation solutions 7 according to the uncertainty of the posibilities and ensuring the reliability of the planned results. One conceptually introduced the effective optimal capital structure zone where financing solutions allow creating the biggest economical value added. Practical significance of the work and the purpose of the results. The made capital structure formation model was introduced, that includes the studies of internal and external environment of an enterprise and is oriented towards the increase of an enterprise’s economical value-added, and enables to assess the financing alternatives according to the advantages and risk of the chosen financing recourse. The application of the created model, scientific and practical results of the work help to highlight the internal factors, stress the main macro economical and global factors of finance markets that affect the inefficiency of enterprises’ activity determined by financing solutions. The practical application of this model in taking financing solutions gives an opportunity to integrally assess future selection opportunities and distribution. Possible further scientific, empiric researches. A background for future scientific studies that may be directed towards dynamic capital structure formation based on wider analysis of finance market globalization factors and situation of country’s economical situation, linked to the trends of internalization of product and other markets, paying more attention to capital management and formation solutions in international companies designed for creation of economical value-added. Work approbation.

The full thesis can be downloaded at :
https://vb.vgtu.lt/object/elaba:1841414/1841414.pdf


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