Analysis of Risks and Factors of Formation of the Structure of Financial Capital of Subject of Entrepreneurship

Rubaha Mariya V. ()
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Rubaha Mariya V.: Ivan Franko National University of Lviv

Business Inform, 2013, issue 11, 308_313

Abstract: The article is devoted to analysis of the structure of sources of financing economic subjects, study of commercial and financial risks of formation of the structure of financial capital of subjects of entrepreneurship. The article pays significant attention to calculation of the weighted average cost of capital, degrees of financial and operational leverages and also to assessment of their mutual influence upon results of financial and economic activity of an enterprise. It studies impact of factors of external environment on the structure of sources of financing subjects of entrepreneurship, these factors include specific features of operational activity, quality and liquidity of assets, concentration of own capital, stages of the life cycle, level of profitability of operational activity, credit history of a borrower and a necessity to ensure the prospective repayment capacity, and financial mentality of owners and managers of an enterprise. The article also analyses factors of external environment of an enterprise (cost of attraction of financing from different sources, commodity and financial markets situations, state regulation and control over business processes, level of taxation of profit of enterprises and also income of physical persons and legal entities - investors from owning securities) that influence the possibilities to attract financial capital and, consequently, prospects of efficient functioning of a subject of entrepreneurship in a long-term prospect.

Keywords: capital structure; commercial risk; degree of financial leverage; degree of production leverage; credit rating; financial risk; market value of an enterprise; weighted average cost of capital (search for similar items in EconPapers)
Date: 2013
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