Impact of the global economic crisis on the optimal capital structure of Russian companies
Abstract
This article analyses impact of global economic crisis and reduction of corporate tax on the optimal capital structure of Russian companies.
Researches show that in today's situation, if a Russian enterprise has no debt load, even a minor increase of debt capital in the company's capital structure leads to increase of WACC.
The article raises and validates the following hypothesis: during global economic crisis, optimal capital structure of Russian companies might be reached only with 100% equity capital funding, hence minimization of WACC value may be achieved only by reducing share of debt capital in company's capital structure.
|
