SEARCH
 

Search

 

Результаты поиска 1 - 7 из 7
Начало | Пред. | 1 | След. | Конец


In search of the optimal capital structure

Zadorozhnaya A. associate professor of Department «Finance, credit, accounting and audit» Omsk State Transport University ( anna_zador@mail.ru )

Journal: Finance and Credit, #5, 2014

The basic theories of capital structure are discussed in this article: static trade-off, dynamic trade-off and pecking order. As the results of empirical studies, none of the presented theory could not become the methodology for the financial policy of real companies. This analysis allows of coming to the conclusion that it is necessary to develop more sophisticated concept of financial architecture, which combines not only the capital structure, but also the ownership structure, the organizational forms and the quality of corporate governance.


The practice of Russian companies' repurchase of shares

Zadorozhnaya A.N. Moscow State University of Railway Engineering, Moscow, Russian Federation ( anna_zador@mail.ru )

Journal: Financial Analytics: Science and Experience, #42, 2016

Importance The research examines buyback transactions as a tool of the corporate financial policy.
Objectives The research reviews the efficiency of repurchase programs so to increase corporate capitalization. When the company announces about a repurchase program for buying its own shares back, it has a positive effect on changes in quotations. The hypothesis was tested during the crisis and relatively stable situation in the stock market.
Methods I examined how the company's announcement about the buyback transaction would influence quotations for shares, using a sample of 30 Russian companies, which had closed repurchase deals from 2006 through 2016. I applied the event study method.
Conclusions and Relevance The findings verify that buyback programs are effective, increasing the corporate capitalization. However, this direction should not be a single mechanism, since it has a short-term effect only and deteriorates a dropping trend. In crises, it would be more reasonable to repurchase own shares.


The practice of Russian companies' repurchase of shares

Zadorozhnaya A.N. Moscow State University of Railway Engineering (MIIT), Moscow, Russian Federation ( anna_zador@mail.ru )

Journal: Digest Finance, #3, 2019

Subject The research examines buyback transactions as a tool of the corporate financial policy.
Objectives The research reviews the efficiency of repurchase programs so to increase corporate capitalization. When the company announces about a repurchase program for buying its own shares back, it has a positive effect on changes in quotations. The hypothesis was tested during the crisis and relatively stable situation in the stock market.
Methods I examined how the company's announcement about the buyback transaction would influence quotations for shares, using a sample of 30 Russian companies, which had closed repurchase deals from 2006 through 2016. I applied the event study method.
Conclusions and Relevance The findings verify that buyback programs are effective, increasing the corporate capitalization. However, this direction should not be a single mechanism, since it has a short-term effect only and deteriorates a dropping trend. In crises, it would be more reasonable to repurchase own shares.


The influence of covenant protection on yield of corporate bond

Zadorozhnaya A.N. Omsk State Transport University, Omsk, Russian Federation ( anna_zador@mail.ru )

Journal: Finance and Credit, #7, 2015

The article presents the results of empirical study of how covenant protection affects the cost of debt. Covenants can mitigate risk-shifting problem in agency conflicts, but also they may influence on corporate financial policy by reducing the cost of debt. The aim of the study is to test the costly contracting hypothesis (CCH) both in domestic corporate bond market and in Eurobond market. The extant research on agency theory of covenants (ATC) relies on the data from the US and other developed countries. Due to the fact that the institutional environment affects the nature of financial contract, it is necessary to extend empirical evidence from developing markets. The hypothesis is tested with regression models using ordinary least squares (OLS) and fixed effect regression. The study is based on panel data. The sample is formed by data for 200 Russian public nonfinancial companies that place bonds both in domestic and Eurobond market during 2008-2013. The obtained research results demonstrate that a negative relation between offering yield and the presence of covenants which is consistent with the costly contracting hypothesis (CCH) is registered only in Eurobond market. These results suggest some policy implication. Covenant provisions included in indenture agreements should be tailored to take into account firms' and issues' characteristics. Analysis of covenant protection contained in bond indentures could be included as a criteria in credit rating assessment.


Determination of the optimal capital structure: from trade-off to APV approach

Zadorozhnaya A.N. Omsk State Transport University, Omsk, Russian Federation ( anna_zador@mail.ru )

Journal: Finance and Credit, #44, 2015

Subject The article reviews static and dynamic trade-off theories of capital structure and empirical study results related to revealing the main determinants of optimal leverage. Special focus is on direct and indirect costs of bankruptcy. The reviewed theoretical models do not provide a complete idea of how to take into account the effect of tax shield and financial distress costs when making practical decisions related to capital structure.
     Objectives The aim of the study is to examine the adjusted present value (APV) approach to substantiate the optimal capital structure.
     Methods The analysis of the evolution of capital structure theories after the Modigliani-Miller theorem shows that there are difficulties in practical application of theoretical results. To review the possibility of practical use of conclusions on static and dynamic trade-off models, I test the APV approach on the case study of PAO Rostelecom.
     Conclusions and Relevance The findings demonstrate that the determination of debt capacity may be perceived as a powerful tool to manage corporate financial flexibility. Testing the APV approach at PAO Rostelecom shows that the current financial leverage is within tolerable limits. Despite the weaknesses of the APV model, such as difficulty to estimate probabilities of default and cost of financial distress, the obtained results allow financial managers to make more informed decisions on capital structure management.


Procedure for determining company's debt load

Zadorozhnaya A.N. Omsk State Transport University, Omsk, Russian Federation ( anna_zador@mail.ru )

Journal: Financial Analytics: Science and Experience, #48, 2014

Importance The article presents the methods of determining debt load with the aim to build the optimal debt portfolio, which facilitates an increase in company value. The practice shows that the universal solution does not exist, and the selection of criteria of debt load optimization is a part of the financial policy of each particular company.
     Objectives The paper aims to study the existing models of determining debt capacity: the WACC method, adjusted present value method of S. Myers (APV), EBIT-volatility method, EBIT-EPS model analysis, and using of the industry benchmarks for the values of debt position limits.
     Methods The analysis of the provisions and rules and regulations of the debt policy of several companies allows identifying the most common practice to determine the optimal leverage and the order of management decisions (formation of internal credit ratings and determination of competence of financial management in the area of attracting borrowings). Using the example of OOO Rostelecom, I tested the WACC model in order to analyze possible practical application of the models of optimal debt level with the target function to maximize company's value.
     Results The obtained findings show that calculation of credit capacity, which corresponds to optimum level of debt load, can be a tool in managing company's financial flexibility. Using the "credit buffer" indicator, defined as unused credit capacity, financial management of a company can make substantiated management decisions in the field of financial and investment policy.
     Conclusions and Relevance I emphasize that the limits of debt load described in the paper may become a basis for determining the ceiling values of financial covenants included in credit agreements or issuing documents of placed corporate bonds.


The procedure for applying the EBIT volatility method and the EBIT-EPS analysis model in the financial decision-making process

Zadorozhnaya A.N. Omsk State Transport University, Omsk, Russian Federation ( anna_zador@mail.ru )

Journal: Financial Analytics: Science and Experience, #36, 2015

Importance The article presents methods for assessing the debt burden in order to form an optimal loan portfolio, which will boost the business value. As the practice shows, there is no versatile and correct solution, and each specific company should stipulate in its financial policy how to choose criteria for optimizing its debt burden.
     Objectives The research examines models for substantiating an optimal structure of the capital through the risk-return trade-off: EBIT volatility method, EBIT-EPS analysis method.
     Methods I analyzed how the theories of capital structure evolved after the Modigliani-Miller theory had appeared, and figured out that the outcome of theoretical researches into the capital structure formation was still difficult to be practically implemented. I tested the EBIT volatility method and EBIT-EPS analysis model and used the case of Rostelecom to analyze whether the optimal debt burden model could be practically applied in relation to the risk-return trade-off function.
     Results The calculation of the corporate debt capacity that correlates with the optimal debt burden, is a tool to manage the financial flexibility of the company. The outcome of the EBIT volatility method allows concluding that the current debt burden is within tolerable limits, and modeling the probability of default for various combinations of the capital structure.
     Conclusions and Relevance The EBIT-EPS analysis model allows evaluating the financial break-even point and determining an option for financing a transaction, so to derive maximum earnings per share. Notwithstanding that the article features the optimal debt burden models that have some weaknesses, the results may help financial executives take reasonable decisions on the capital structure management.


Результаты поиска 1 - 7 из 7
Начало | Пред. | 1 | След. | Конец


Отсортировано по релевантности | Сортировать по дате