Makarov I.N., Droganov O.N. —
Company financial strategy, capital structure and borrowing: consideration of the impact of industry-specific and technological risks
// Finance and Management. – 2019. – ¹ 3.
– P. 22 - 31.
DOI: 10.25136/2409-7802.2019.3.30673
URL: https://en.e-notabene.ru/flc/article_30673.html
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Abstract: Currently, the economic structure and dominating technologies within most of the industries are rapidly changing. The next scientific discovery or technological invention can easily collapse the financial strategy of a company that bet on “wrong” technologies, or did not foresee sufficient safety margin within its capital structure, borrowing policy and investment strategies, which would allow managing the risk flows. The subject of this research lies in the approaches towards the definition of the capital structure and borrowing system, capable of establishing financial stability of a company under the conditions of technological transformation of the industry markets. The goal of this work is to determine the conditions of financial stability of a company during technological transformation on the industry markets. The results of this research, which also justify the scientific novelty, consist in the system of determinants of financial stability of a company in the long-term perspective, theoretical substantiation of the correlation between borrowing and the development phase of the industry market. The author concludes on the need for variation of the allowable level of borrowing for companies working at different stages of development of the industry markets depending on likelihood of emergence of a technology or product that would drastically change the structure of these industry markets.