Theoretical approaches in assessment of the impact of the capital structure on performance efficiency of corporations

Abstract

Aim. The work aimed to reveal the relationship between the structure of capital and the performance efficiency of corporations.Tasks. The work was performed to generalize and systematize approaches to determining the content of the capital structure of corporations; as well as substantiate the relationship between the structure of capital and the performance efficiency of corporations.Methods. The author, using general scientific methods (analysis, synthesis, generalization), studied the results of empirical studies aimed at assessing the relationship between the capital structure and the performance efficiency of corporations.Results. It was concluded that under conditions close to reality, decisions on the choice of sources of financing and the establishment of a proportion between them have a significant impact on the performance efficiency of corporations. The direction, strength, and form of relationship depend on the chosen approach to determining the content of the capital structure and the characteristics of efficiency used in the study.Conclusions. The process of formation and management of the capital structure is an integral part of the financial management system. The level of financial stability of the corporation depends on the competence extent the sources of financing are chosen and the capital structure is formed. By regulating the capital structure, management team has the opportunity to increase the financial efficiency of the corporation, including the profitability of operations and investment activity.