OPTIMIZATION OF THE CAPITAL STRUCTURE OF MULTINATIONAL CORPORATIONS AMIDST FINANCIAL UNCERTAINTY
Abstract
The purpose of the article is to highlight the theoretical and practical aspects of optimizing the capital structure of international corporations in the context of financial instability. Research methodology. The methodological basis of the study is a systematic approach and analysis of modern concepts of capital structure optimization. To solve these tasks, comparative and statistical analyzes, the method of logical generalization were used. Results. As a result of the analysis of the capital structure of the 10 most famous international corporations that operate in Ukraine, it was found that almost half of them have problems associated with the optimal ratio of equity and debt capital. The analysis of the indicators of the accumulation and use of capital of leading international corporations during the period of financial instability made it possible to identify certain features in capital management which are aimed at optimizing capital structure. As a result of the study, it was found that the attraction of both external and internal sources of capital has both advantages and disadvantages; therefore their combination is of particular importance. The study of the indicators of the accumulation and use of capital by a number of leading world corporations made it possible to conclude that they use quite different approaches to financing their own activities, which, first of all, is determined by the field of their work and the prevailing type of business operations. At the same time, it is common for all companies to comply with the condition that the return on invested capital prevails over the value of the weighted average cost of capital. The practical significance of the research results. Theoretical substantiations and results of empirical research, revealing the theory of capital structure optimization and individual practical approaches of leading international corporations in capital management under conditions of financial instability can be used in the practice of Ukrainian business entities to improve the efficiency of economic activities and, in particular, the use of equity capital in crisis situations.
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