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Financial Analytics: Science and Experience
 

Economic-mathematical analysis of financial leverage effect

Vol. 7, Iss. 34, SEPTEMBER 2014

Available online: 1 September 2014

Subject Heading: MATHEMATICAL METHODS OF ANALYSIS

JEL Classification: 

Pages: 56-63

Kirillov Yu.V. Novosibirsk State Technical University, Novosibirsk, Russian Federation
kirillov_yu@ngs.ru

Nazimko E.N. Novosibirsk Humanitarian Institute, Novosibirsk, Russian Federation
enn2003@yandex.ru

The article deals with the analysis of the effect of financial leverage in different conditions of economic activities of an organization. The paper provides the mathematical substantiation of the economic relations, which describe this effect, as well as the conditions under which it arises. The authors make the mathematical analysis of an influence of the main parameters of the leverage on the performance indicator of the financial and economic activities of an organization.

Keywords: financial leverage, loan capital, return on equity, economic profit, forecast period, economic-mathematical model

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