• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site

Analysis the Capital Structure of Companies in Emerging Markets

Student: Tat`yana Suvorova

Supervisor: Irina Khvostova

Faculty: Faculty of Economics

Educational Programme: Bachelor

Year of Graduation: 2014

This article examines various approaches to the definition of capital structure for companies operating in emerging markets. In this paper we would like to consider the optimal capital structure for companies which share their activities in three different branches of the economy in the emerging markets. In our analysis we aim to find and estimate optimal capital structure for the areas: in the iron and steel market, trade and mobile communication using the model of weight average cost of capital (WACC). The objectives of the work are: the study of the theoretical foundations of the capital structure of enterprises, consideration of approaches to the definition of an optimal capital structure, the study of specific companies and determining the optimal capital structure for the industry as a whole.In our study we used statistical and tabular methods in order to achieve the most appropriate results. We assume that the capital structure of companies that are considered the most successful in their field will be the most optimal for other companies working in the same direction. For further analysis, we use a raw data on the largest companies in the iron and steel market, trade and mobile communication.This work is based on the performance data of 30 companies in different sectors of the Russian economy.The contents of this work include an introduction, three chapters, conclusion and bibliography.The study of the capital structure for different companies in the same sector in the Russian Federation showed that, despite the various measures of risk and the weighted average cost of capital, the optimal capital structure for all companies will be approximately the same.In addition, it was noted that despite the general for all companies the optimal value, in reality, many businesses may deviate substantially from these ratios in the normal course of business. Additional studies have shown that such changes in the capital structure are directly dependent on a number of non-financial factors, as well as the stage of the life cycle.Our results show that although there is no optimal capital structure to one company since that the latter will be formed on the basis of the needs of the organization at a particular time, we can talk about the capital structure that will be optimal for all companies operating in one sector of the economy.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses