Evaluation of the optimality of the capital structure of an agro-industrial holding (“miratorg” agroholding case)

DOI 10.33305/1910-60

Issue № 10, 2019, article № 7, pages 60-70

Language: Russian

Original language title: ОЦЕНКА ОПТИМАЛЬНОСТИ СТРУКТУРЫ КАПИТАЛА АГРОПРОМЫШЛЕННОГО ХОЛДИНГА (НА МАТЕРИАЛАХ АГРОХОЛДИНГА «МИРАТОРГ»)

Keywords: CAPITAL STRUCTURE, OWN CAPITAL, DEBT CAPITAL, LEVERAGE

Abstract: The world practice shows that the capital structure (proportion of own and debt capital) is important for company’s efficiency. Debt finance allows the company to invest in its growth more actively and with higher efficiency and to use the favourable situation on the market. The paper contains an analysis of the structure of the capital of the agro-industrial holding “Miratorg”. The importance of this task is based on the big size of this company and on the huge part it plays in the Russian agro-industrial complex. This is why it is very important to create conditions for effective functioning of this company, and optimization of the capital structure is one of the tools that can be used to reach this goal. The evaluation of the cost of own and debt capital of the “Miratorg” company was made. A dependence of the capital value from the size of the debt capital was identified. It is demonstrated that during most of the period 2012-2017 the capital structure was not optimal. The part of the debt capital was too small. We can recommend increasing the share of the debt finance in order to improve the efficiency of this company. The low share of the debt finance can be explained by the fact that “Miratorg” is not a public company and can be interested in non-economic goals (financial independence).

Authors: Lipatnikov Vitalii Sergeevich, Aleksandrov Anton Alekseevich, Vertakova IUliia Vladimirovna, Kashirtseva Anna IUrevna