Home  Journals  Finance and Credit  29(365) – 2009 August

The Formation of Target Capital Structure in Business

Available online: 17 September 2009

Subject Heading: Financial management

JEL Classification: 

The article explores statical and dynamical theories of formation of capital structure and analyzes the practice of building the target capital structure by Russian business organizations. The author suggests a conception of forming a business-subject by means of target capital structure on the basis of trade-off approach taking into consideration the reduction of agent costs through creating the conditions of minimizing the costs of loan capital formation and introducing restraints that allow reducing the agent’s contradictions between the holders of owned and loan capital and managers of a business-subject.

Keywords: Capital Structure, optimization, model, business

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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