THE PROBLEMS OF OPTIMAL CAPITAL STRUCTURE FORMATION IN COMPANIES OF THE MARITIME INDUSTRY SECTOR Cover Image

OPTIMALIOS KAPITALO STRUKTŪROS FORMAVIMO PROBLEMOS LIETUVOS JŪRINIO SEKTORIAUS VERSLO ĮMONĖSE
THE PROBLEMS OF OPTIMAL CAPITAL STRUCTURE FORMATION IN COMPANIES OF THE MARITIME INDUSTRY SECTOR

Author(s): Kristina Puleikienė, Angelė Lileikienė, Vilija Bujanauskienė
Subject(s): Economy
Published by: Lietuvos verslo kolegija
Keywords: Capital; capital structure; optimal capital structure.

Summary/Abstract: The aim of this article the analysis of the optimal capital structure. The issue of optimal capital structure is highly important when making decisions on new investments or restructuring of a company. If a company already has optimal structure, its new investments should be financed with the same proportion of funding sources. If a company does not have optimal structure, then new financing sources have to lead towards such structure. If the existing capital structure is unsatisfactory, re-capitalisation of a company can be required. It is assumed that an optimal capital structure exists, although usually this issue is deemed rather controversial. When choosing the capital structure, a company analyses risk-profitability ratio, and owners of the company decide what specific level of risk will be chosen. capital structure reflects the corporate strategy and policy of formation of financing sources. One or another decisions that are made regarding capital structure in the process of formation of financing sources to large extent depend on business-specific features of a company, its level of competitiveness and business development strategy.

  • Issue Year: 25/2014
  • Issue No: 2
  • Page Range: 77-87
  • Page Count: 10
  • Language: English