scientific peer-reviewed journal

ISSN 2413-8452

Рус | Eng


№ 4'2015


Materials licensed under Creative Commons Attribution (CC-BY 4.0), which allows the unrestricted use of work provided attribution.

Dissemination of knowledge by open access model (free, fast, permanent, full-text access to scientific and educational content in real-time).

The choice of the capital structure of the company according to the framework of theories of capital structure

Mitenkova Elena Nikolaevna

Lomonosov Moscow State University, Moscow, Russia


This article deals with the actual problem of choosing capital structure of a company, because debt ratio has an influence on making strategic decisions of the long-term company’s development, its investment risks, potential interest conflicts between management, owners and lenders. The article analyzes the principles of the construction of capital structure in terms of classical and modern theories of capital structure using methods of scientific knowledge: system analysis, synthesis, logical analysis, empirical researches. According to the first theory of the capital structure, developed by M. Miller and F. Modigliani through a number of strict preconditions, capital structure does not affect the company’s value. By adding a tax factor authors showed that in this case the choice of capital structure affects the company’s value, because debt capital increases it by the value of the tax shield. According to trade-off theory the main determinants of capital structure are the size of the tax shield, the probability of bankruptcy and the credit rating. According to the theory of the signal the capital structure depends on such factors as the information asymmetry and the credit rating. According to the pecking order theory capital structure the choice of it is determined by the hierarchy of sources of financing: firstly companies prefer to use internal sources of financing, then - debt financing. According to the market timing theory the key factors of capital structure are share price fluctuations. Analysis of various theories of the capital structure has showed that most theories have been developed by economists represented countries with developed markets. But developed countries and emerging countries have a lot of differences, which have an impact on choosing capital structure by companies.


Capital structure, equity capital, debt capital, the company.



DOI: 10.35688/2413-8452-2015-04-005


For citations: Mitenkova E.N. The choice of the capital structure of the company according to the framework of theories of capital structure // Ekologiya i stroitelstvo. 2015. № 4. Р. 22–27. doi: 10.35688/2413-8452-2015-04-005