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The Influence of the Capital Structure of State Enterprises on the Profitability of the Enterprise

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Internet of Things, Smart Spaces, and Next Generation Networks and Systems (NEW2AN 2022)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 13772))

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Abstract

The study examined the relationship between the capital structure and profitability of SOEs. A literature review on the relationship between firm profitability and capital structure has shown that there is a positive, negative or neutral relationship between profitability and capital structure. It also showed that there is no reliable evidence of what the optimal capital should be. Regression analysis was used to study the relationship between capital structure and profitability. Also, average profitability and debt ratios were used to determine whether SOEs depended on debt and targeted budget transfers. It was determined that there is no dependence of short-term debt funds on profitability in making decisions on the capital structure of enterprises with a state share, and that long-term debt funds and state-targeted funds have a significant negative effect. Also, long-term debt accounts for an average of 43% of the total capital, and target incomes make up 53% of the company’s own funds.

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Ishquvvatovich, C.F. (2023). The Influence of the Capital Structure of State Enterprises on the Profitability of the Enterprise. In: Koucheryavy, Y., Aziz, A. (eds) Internet of Things, Smart Spaces, and Next Generation Networks and Systems. NEW2AN 2022. Lecture Notes in Computer Science, vol 13772. Springer, Cham. https://doi.org/10.1007/978-3-031-30258-9_31

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  • DOI: https://doi.org/10.1007/978-3-031-30258-9_31

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-30257-2

  • Online ISBN: 978-3-031-30258-9

  • eBook Packages: Computer ScienceComputer Science (R0)

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