| Abstract [eng] |
Selection of appropriate capital structure determines the success and prospects of business. With changes in markets, financial and economic situation, there are changes also to the alternatives of funding sources. In order to find the optimal capital structure one has to balance the own and borrowed funds efficiency and to identify what factors determine the structure of capital formation. This can be both internal factors, such as business lending opportunities, profitability, company size, etc., as well as external factors: gross domestic product, inflation, interest rate and others. Objective of this work is corporate capital structure formation. The aim of this work is to explore the factors influencing the capital structure formation of Lithuanian companies and develop the communication model between the analysed factors. In order to achieve the objective, the following tasks are considered: • based on scientific literature, to analyze a company's capital structure composition and the basic theories and principles of the capital structure formation; • to carry out an analysis of empirical research where foreign and Lithuanian authors investigate the factors influencing the capital structure formation. To analyse and compare models for the formation of capital structure developed by several authors; • to develop a model for the interaction of macro-economic indicators and financial leverage and determine the influence of macroeconomic factors on the capital structure formation of the Lithuanian business. The analysis of corporate capital structure formation theories suggests that these theories and approaches do not respond to the question: what an optimal capital structure should be, as they overlook the internal and macroeconomic factors existing practically in the companies. They lead to the gap between theory and practice. Upon summarizing the empirical results of scientific research, we can conclude that most of the authors focused on the analysis of internal factors; meanwhile macro-economic factors were largely ignored. Based on theoretical information and scientific studies, the model for the interaction of macro-economic indicators and financial leverage was designed. The study on the correlation between the macro-economic factors and capital leverage will help business owners in making the right decisions in shaping the capital structure. The paper consists of an introduction, three parts, conclusions and summary in Lithuanian and English. The main material is described in 50 pages including 13 tables and 9 figures. It also contains four annexes. Used in the scientific literature, a list of 38 sources, information publications - 18. |
