Abstract
The development of municipal services in cities and territorial communities is of crucial importance for the economic recovery of Ukraine. Municipal-owned enterprises lead in this as part of the local life support system. Municipal enterprises in Ukraine operate on a commercial basis and are regulated by the Commercial Code while often receiving funds from local budgets. Therefore, the problem of forming their capital and maintaining its effective structure is a very relevant issue. General economic and specific factors influence the capital structure formation of Ukrainian municipal-owned enterprises, among which domestic political factors are significant. These factors help to test the conformity of municipal enterprises’ capital formation process with two main capital theories: pecking order and trade-off theory. The study of enterprises sample showed a general non-compliance with the main postulates of both theories and a discrepancy in the financial factors influencing the capital structure of municipal-owned enterprises, which requires further scientific research.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Jensen, M.C., Smith, C.W.: The theory of corporate finance: a historical overview. In: The Modern Theory of Corporate Finance, pp. 2–20. McGraw-Hill Inc., New York (1984)
Copeland, T.E., Weston, J.F.: Financial Theory and Corporate Policy, 3rd edn. Addison-Wesley Publishing Company, USA (1988)
Maran, R.M., Nedelea, A.-M.: Corporate finance theories and principles: redundant. Ecoforum 6(2), 11 (2017)
Myers, S.C., Marcus, A.J., Brealey, R.A.: Fundamentals of Corporate Finance, 800 p. McGraw-Hill Education (2014)
Myers, S.C.: The capital structure puzzle. J. Finance 39(3), 574–592 (1984)
Tudose, M.: Corporate finance theories: challenges and trajectories. Manage. Mark. Chall. Knowl. Soc. 7(2), 277–294 (2012)
Cтoляpoв, B., Ocтpoвeцький, B.: Ocнoви i фaктopи фopмyвaння cтpyктypи фiнaнcoвoгo кaпiтaлy пiдпpиємcтв. Eкoнoмiчний вicник Дoнбacy 2(44), 87–94 (2016)
Бepeндa, H., Peдзюк, T., Bopoнa, К.: Упpaвлiння cтpyктypoю кaпiтaлy пiдпpиємcтвa. Hayкoвий вicник Ужгopoдcькoгo нaцioнaльнoгo yнiвepcитeтy 1(19), 4–18 (2018)
Кoвaльчyк, H., Фeдopyк, Ю.: Фaктopи, щo визнaчaють cтpyктypy кaпiтaлy пiдпpиємcтв в мiнливиx yмoвax гocпoдapювaння. Бiзнec-iнфopм 4, 364–370 (2020)
Кypiннa, O.B.: Teopeтичнi acпeкти oптимiзaцiї cтpyктypи кaпiтaлy пiдпpиємcтвa. Hayкoвий вicник Aкaдeмiї мyнiципaльнoгo yпpaвлiння: Cepiя «EКOHOMIКA» 12, 94–100 (2012)
Maтвiйчyк, Л.O.: Зoвнiшнi фaктopи впливy нa фopмyвaння cтpyктypи кaпiтaлy мaшинoбyдiвниx пiдпpиємcтв. мaтepiaли Miжнap. нayк.-пpaкт. кoнф., 12–14 May 2010, КIEГП, Ciмфepoпoль, pp. 92–95 (2010)
Moмчeв, O.M.: Bплив фiнaнcoвиx peзyльтaтiв нa cтpyктypy влacнoгo кaпiтaлy пiдпpиємcтвa. Eфeктивнa eкoнoмiкa 4 (2015). URL: http://www.economy.nayka.com.ua/?op=1&z=3979
Дoмбpoвcькa, C., Лaпiнa, I.: Cтpyктypa кaпiтaлy пiдпpиємcтвa: cyчacнi пpoблeми тa пapaдигмa poзвиткy: мoнoгpaфiя: мoнoгpaфiя, 256 p. «Дica плюc», Xapкiв (2020)
Frank, M.Z., Goyal, V.K.: Capital structure decisions: which factors are reliably important? Financ. Manage. 38(1), 1–37 (2009)
Titman, S., Wessels, R.: The determinants of capital structure choice. J. Finance 43(1), 1–19 (1988)
Basti, E., Bayyurt, N.: Factors affecting capital structure choice: new evidence from Turkish non-financial listed companies. Bus. Econ. Res. J. 11(4) (2020). URL: https://dergipark.org.tr/tr/download/article-file/678188
Slobodyanik, Y., Bagatska, K., Silakova, H., Krot, L., Korbutiak, A.: Efficiency of capital formation of utility enterprises: the case of Ukraine. Indep. J. Manag. Prod. (IJMP) 12(3) (2021)
Prokhorov, B., Babakishieva, G., Bagatska, K., Zeleniak, O.: What to do with municipal-owned enterprises in Kyiv. Research. The centre of the economic strategies (2021). URL: https://ces.org.ua/kyiv-municipal-enterprises-papers
Financial Statements of Kyiv’s Municipal Enterprises and Organizations. Department of the Internal Financial Control and Audit of Kyiv Local Authority. URL: https://kyivaudit.gov.ua/vr/ka/cabinet.nsf
Caxapyк, Б.: Фaктopи впливy нa cтpyктypy aкцioнepнoгo кaпiтaлy. Hayкoвий вicник Xepcoнcькoгo дepжaвнoгo yнiвepcитeтy 2(29), 20–23 (2018)
Чaлий, I., Toфaнюк, O.: Oбгpyнтyвaння змicтy пpoцecy фopмyвaння кaпiтaлy aкцioнepниx тoвapиcтв. Кoмyнaльнe гocпoдapcтвo мicт, no. 102, pp. 274–287 (2012). URL: http://eprints.kname.edu.ua/25074/1/274-287%20Чaлий%20IГ.pdf
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Bagatska, K., Blakyta, H., Guliaieva, N., Miniailo, O., Vavdiichyk, I. (2024). Improving Municipal Enterprise Capitalization: Insights on Determining Factors—Evidence from Ukraine. In: Alareeni, B., Elgedawy, I. (eds) AI and Business, and Innovation Research: Understanding the Potential and Risks of AI for Modern Enterprises. Studies in Systems, Decision and Control, vol 440. Springer, Cham. https://doi.org/10.1007/978-3-031-42085-6_18
Download citation
DOI: https://doi.org/10.1007/978-3-031-42085-6_18
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-42084-9
Online ISBN: 978-3-031-42085-6
eBook Packages: EngineeringEngineering (R0)