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Introduction. The article is devoted to the identification of factors influencing the capital structure of corporations in the process of financial management through the use of regression analysis tools. It is established that the greatest influence on the attraction of borrowed sources of capital financing is exerted by the cost of equity of the current period and the weighted average cost of total capital of the previous period. The share of net assets directly affects corporate borrowing, although to a much lesser extent than the cost of capital. At the same time, profitability indicators have the opposite effect: their increase leads to a decrease in the level of borrowed capital, and corporations in this case turn to their own sources of capital financing, in particular, through retained earnings. The level of dividends has the opposite insignificant effect: the growth of stock profitability leads to the refusal of loan financing.
Purpose. Substantiation of factors influencing the capital structure of corporations through their empirical research.
Results. The study revealed that the most influential factors on the capital structure of corporations are the cost of equity and the weighted average cost of capital of the corporation in the previous period. An inverse relationship has been established between the value of the corporation's total capital in the previous period and borrowing: while the weighted average cost of capital increases, corporations reduce borrowing. At the same time, the cost of equity has a direct impact on the change in capital structure in the direction of increasing borrowed funds. Rising equity contributes to corporate access to borrowed financial resources.
Originality. The originality of the article lies in the proposal to the identification of factors influencing the capital structure of corporations in the process of financial management through the use of regression analysis tools.
Conclusion. The share of net assets, as hypothetically expected, directly affects corporate borrowing, albeit to a much lesser extent than the cost of capital. At the same time, profitability indicators have the opposite effect: their increase leads to a decrease in the level of borrowed capital, and corporations in this case turn to their own sources of capital financing, in particular, through retained earnings. The level of dividends has the opposite insignificant effect: the growth of stock profitability leads to the refusal of loan financing.
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