Identification of Factors of Formation of the Cost of Financial Resources of Economic Subjects

Zakorko Marina V. ()
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Zakorko Marina V.: Donetsk National University

Business Inform, 2013, issue 5, 278_287

Abstract: The article generalises and systemises factors of formation of the cost of financial resources of economic subjects that aggregate four blocks: factors, caused by the structure of assets, effectiveness and prospects of investment activity of an economic subject; factors, determined by the structure of financing of activity of an economic subject; factors, caused by the structure of ownership; and external factors that reflect influence of macro-economic environment. The article underlines fundamental rule, according to which the higher the inefficiency and imperfection (friction property) of the financial market, the bigger the influence of specific internal factors of activity of economic subjects upon the cost of their financial resources. The article makes a conclusion on the basis of the analysis of the degree of financial development of Ukraine that there are all prerequisites for formation of a significant discrepancy between the cost of external and internal financing, which manifests itself most vividly in the period of a crisis and recession. The article assesses indicators of internal determinants of the cost of financing (size of a company, structure of assets and prospects of growth) of economic subjects in Ukraine, which could be compared with indicators of the countries with developing markets. The article generalises cost factors from the view of specific features of the formed structure of ownership of economic subjects in Ukraine.

Keywords: financial resources; cost of financial resources; cost factors; structure of the capital; agency costs (search for similar items in EconPapers)
Date: 2013
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