CLASSIFICATION OF THEORETICAL APPROACHES TO THE DETERMINATION OF THE OPTIMAL CAPITAL STRUCTURE OF THE JOINT STOCK COMPANY

Abstract

Purpose. The aim of the article is generalization and systematization of the views of scientists in relation to the process of optimizing the structure of capital based on the classification of existing theoretical approaches. Methodology of research. Theoretical and methodological basis of the research consisted of the general scientific methods: analysis and synthesis  for studying the main provisions of the existing theories of capital structure existing in the scientific literature; cause-effect connection - in the classification of theories of the structure of capital; monographic  in studying the works of foreign and domestic scientists in the field of optimization of the structure of capital. Findings. It is determined that stable financial position of the company depends on the substantiation of the optimal proportions of using own and borrowed capital and attracting the necessary volumes to achieve the target capital structure. The stage-by-stage development of theories of capital structure and their key positions is investigated. It has been established that the approaches to capital structure existing in the scientific literature can be divided into two groups: up to 1958  traditional or classical approach to capital structure, and after 1958 - neoclassical theory of capital structure. It is found that some patterns of capital structure are aimed at finding the optimal capital structure of the company and its observance, that is, they are static, while in others (dynamic models)  the capital structure is the cumulative result of the company’s activity in the past. It is proved that the classification of theories of the structure of capital can significantly advance in understanding what should be guided by top management of the company in making financial decisions regarding the formation of an optimal structure of capital. Originality. The classification of existing theories of the structure of capital received further development. A classification of theories of capital structure of joint stock companies is proposed on the basis of generalization and systematization of the views of scientists, which, unlike existing ones, includes a greater number of classification characteristics and takes into account the latest trends in the formation of an optimal capital structure that is not sufficiently represented in the national scientific and economic literature. Practical value. The results of the study may be proposed for analytical support of the development and implementation of the capital structure management policy in a joint-stock company in order to optimize it.