THE IMPACT OF THE CAPITAL STRUCTURE ON THE ENTERPRISE VALUE AT DIFFERENT STAGES OF THE LIFE CYCLE. CASE OF INDUSTRIAL ENTERPRISES IN THE REPUBLIC OF MOLDOVA
THE IMPACT OF THE CAPITAL STRUCTURE ON THE ENTERPRISE VALUE AT DIFFERENT STAGES OF THE LIFE CYCLE. CASE OF INDUSTRIAL ENTERPRISES IN THE REPUBLIC OF MOLDOVA

Author(s): Iurie Besliu, Oleg Petelca, Veronica Carbuz
Subject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: capital structure; financing sources; the value of the company; risk indicators Republic of Moldova;
Summary/Abstract: This paper summarizes the arguments and counter-arguments in the scientific discussion on the topic of the optimal structure of capital and the multitude of micro and macro-level factors that influences the decisions of the company's management regarding the choice of financing sources. The main purpose of the research is to determine how changing the structure of capital influences the value of the company. The quantitative models provide only an approximate assessment of the ratio between debts and equity. In the real situation, the structure of capital is formed under the influence of many factors, many of which are difficult to analyze. Among them can be the attractiveness of different sources of funding for company management, information asymmetry, the stage of the life cycle of the company, the need to maintain financial flexibility and questions of shareholder control over the enterprise, the influence of stakeholders. The proposed model for estimating the influence of the capital structure on the company's value is based on the establishment of risk indicators, which may be applicable in the conditions of the economy of the Republic of Moldova, namely risk-free rate of return, risk margin associated with indebtedness, cost of borrowed capital, risk premium, Beta Unlevered, rate of income tax, Beta Levered, cost of equity. The object of the research is joint-stock companies, the most representative for the industrial sector of the Republic of Moldova. The results received confirm that the proposed capital structure optimization model can be used in capital structure planning and assess the impact of capital structure decisions on maximizing the value of the enterprise.

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