REDUCTION THE COSTS OF FORMATION OF ENTERPRISE’S EQUITY

Abstract

Urgency of the research. Decreasing the cost of equity, which is an important source of financial provision of enterprise’s activity, in particular newly created, is a topical issue in a market economy. Target setting. Domestic enterprises are characterized by the growing share of current liabilities at this stage. It threatens the stability of their financial state and causes the need to increase the role of internal financial resources. Actual scientific researches and issues analysis. In accordance with modern approaches the basis for calculating the cost of equity is the premium for the country’s risk in which the investment object is located; the access to the capital market; the risk of default of the company in emerging markets. Uninvestigated parts of general matters defining. There is a need to study the role of the net assets components in the formation of enterprise’s equity, which will identify additional ways to reduce the cost of its involvement. The research objective. The article provides:  analysis of the influence of factors on the cost of net assets;  identification of the role of components in the formation of domestic enterprises’ equity. The statement of basic materials. The research has revealed that the share of equity in financial resources of Ukrainian enterprises as of 01.01.2017 is 24,5%. Nowadays the prevailing form of business organization is limited liability companies, which testifies to the favourable legislation of their registration and functioning. Formation of registered capital exclusively from the monetary contributions, cooperation with underwriters, potential investors significantly reduces the costs of such procedure. Domestic legislation provides an opportunity to optimize the amount, form of payment and taxation of dividends, which deceases the cost of equity. Conclusions. The ways of reduction the costs of equity formation were revealed, in particular: association of enterprises; private placement of corporate rights; cooperation with intermediaries; decreasing the level of dividend taxation.