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OPTIMIZING OF THE CAPITAL STRUCTURE OF THE CONCRETE FIRM AND ITS THEORETICAL AND PRACTICAL PROBLEMS

HRDY, M.

Abstract

Optimizing of the capital structure is one of the most important problems concerning the corporate finance theory and practice. There are a lot of theories available, but the problem is which theory to choose and how to cope with the application problems. The aim of this contribution is to consider the possibility of the optimizing of the capital structure of the concrete firm. For that reason is necessary to analyze single theories including the analysis of the application problems of these theories. The most important problem in a theoretical way is to identify the theory which best fits and also the concrete behavior of the firm. It has to decide firstly if to start the process of active optimizing or if it is satisfied with the following of branch standards or if the firm is satisfied with complying with the pecking order theory. In case of active optimizing process firm could use theories stipulating the concrete empirical value, the traditional theory and the theory of spouses Neumaiers'. In case of using the traditional theory it is necessary to analyze the application problems which cover the identifying of the cost of equity and debt in dependency on the indebtedness. The important role plays also the subjective approach of managers to the process of optimizing. But the proposition how to cope with this situation is possible to prepare and some recommendation steps concerning the process of the optimizing of the capital structure of the concrete firm to offer. The contribution is also focused on the role of the branch standards in the process of the optimizing of the capital structure of the concrete firm. The firms can use the branch standards available and adjust their indebtedness on this level besides the process of the active optimizing. The problem however lies in the identification of these branch standards. The branch standards in the fifth areas were analyzed from the point of view of the Czech Republic, the U.S.A., of the world and of the Europe. Even if the results in the single areas were different, it is possible to generalize that the indebtedness of the firms in the Czech Republic is in general higher than it is in the U.S.A., in Europe, and in total in the world. The reason could lie in the relatively great benevolence in the area of the offers of the bank loans in previous periods. The next interesting conclusion arises from the findings out that the indebtedness from the market values is lesser than from the accounting values, which demonstrates the higher market value than the accounting value.

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DOI resolver: doi.org/10.5593/SGEMSOCIAL2014/B22/S6.068

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