Abstract
The aim of the article was to find out the optimal capital structure of the companies in relation to their maximum performance. To reach this aim, the data of the companies operating in the field of heat industry of the Slovak Republic were used. As the first method, a correlation matrix was applied. It was found out that there is statistically significant relationship between capital structure indicators and performance of the companies. Due to the lack of data in time series, the authors were not able to apply multiple regression model to assess the impact of these indicators on performance. Therefore, a method of modelling was used to analyze the impact of the change in capital structure on performance. Modelling was based on the principle of a gradual change in the capital structure in favor of debt. By the increase in debt, it was confirmed that there was a change in the values of selected indicators. In the course of analysis, it was confirmed that the value of EVA equity increased with the rising indebtedness by which the proposition I of the modified MM theory was supported. The performance expressed by EVA entity indicator is at its minimum when the capital structure is 90:10 in favor of equity. By increasing the debt, EVA entity rises. Based on these results, it can be stated that the performance of selected companies increases when the share of debt also rises, even when taking into account the rising financial risks.
Highlights
Company’s performance is the precondition of its success and competitiveness
A problem, which is interesting, is the According to Fibírová and Šoljaková (2005), the answer to a question whether there is an optimal term performance is used in connection with capital structure and whether it is related to the delimitation of the nature of the existence of a minimum cost of capital, or the maximum marcompany in a market environment, its success ket value of the company or whether it is achieved and ability to survive in the future
TP23 shows the minimum changes in the field debt, which means that the model respects the of the cost of equity, because it mainly operates increasing financial risk arising from increasby using its equity
Summary
Company’s performance is the precondition of its success and competitiveness. The measurement and evaluation of performance is a current problem. Based on the influence of financial security and variance, an ef- Sheikh’s (2013) research studies, we can state that fort to keep the ownership control of a company, there is an indirectly proportional relationship beor financial market situation This indirectly proportional relationship is justi- The term “company performance” can be defied by the fact that the amount of agent costs leads fined from the points of view of several authors. A problem, which is interesting, is the According to Fibírová and Šoljaková (2005), the answer to a question whether there is an optimal term performance is used in connection with capital structure and whether it is related to the delimitation of the nature of the existence of a minimum cost of capital, or the maximum marcompany in a market environment, its success ket value of the company or whether it is achieved and ability to survive in the future MATERIALS performance is relatively calculated and further analyzed. Veber (2004) defines perfor-
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