Title: IMPACT OF THE GLOBAL ECONOMIC CRISIS ON THE OPTIMAL CAPITAL STRUCTURE OF RUSSIAN COMPANIES
Abstract: This article analyses impact of global economic crisis and reduction of corporate tax on the optimal capital structure of Russian companies.Researches show that in today's situation, if a Russian enterprise has no debt load, even a minor increase of debt capital in the company.' capital structure leads to increase of WACC.The article raises and validates the following hypothesis: during global economic crisis, optimal capital structure of Russian companies might be reached only with 100% equity capital funding, hence minimization of WACC value may be achieved only by reducing share of debt capital in company's capital structure.
Publication Year: 2009
Publication Date: 2009-03-23
Language: en
Type: article
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