Management of the borrowing capital by influence on corporate market value

Authors

  • Роман Ігоревич Заворотній Kyiv National Economic University named after Vadym Hetman 54/1 Prospect Peremogy, 03680, Kyiv, Ukraine, Ukraine

DOI:

https://doi.org/10.15587/2312-8372.2013.19662

Keywords:

cash value added, value of the borrowing capital, brutto investments, beta ratio

Abstract

The article is devoted to problems of impact valuation of management on the market value of domestic oil refineries by formation of credit resources. The main goals of the research are to describe the simplest method of analysis and modify the standard analytical methods to use them in valuation of unprofitable activity of the Ukrainian oil refineries. The author uses statistical approaches in the analysis of enterprises’ empirical financial data.

To achieve the main goals the author chooses cash value added (CVA) as a benchmark and investigates its change influenced bybook value and market value of unprofitable businesses’ borrowing capital. The article touches upon the problems of calculation of market value of borrowing capital; the author modified the formula of weighted average cost of capital which has a negative amount of equity capital. The problems of calculation of enterprises’ CVA with a negative amount of gross (brutto) investments are also considered.

The principles of calculation described by the author allow defining the efficiency of financial management precisely and objectively and can be used in activity of financial divisions of the Ukrainian enterprises.

Author Biography

Роман Ігоревич Заворотній, Kyiv National Economic University named after Vadym Hetman 54/1 Prospect Peremogy, 03680, Kyiv, Ukraine

PhD, Associate Professor

Department of Сorporate Finance

References

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Published

2013-12-23

How to Cite

Заворотній, Р. І. (2013). Management of the borrowing capital by influence on corporate market value. Technology Audit and Production Reserves, 6(6(14), 26–29. https://doi.org/10.15587/2312-8372.2013.19662

Issue

Vol. 6 No. 6(14) (2013): Scientific outcomes 2013

Section

Economy

License

Copyright (c) 2016 Роман Ігоревич Заворотній

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