|JEL Classification: D24, G31, R49
Petruk O., Doctor of Economic Sciences, Professor of Department of Finance and Crediting, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine
Trusova N., Doctor of Economic Sciences, Professor of Department of Finance, Banking and Insurance, Tavriya State Agrotechnological University named after Dmitry Motorny, Melitopol, Ukraine
Polchanov A., Doctor of Economic Sciences, Associate Professor, Associate Professor of Department of Finance and Crediting, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine
Dovgaliuk V., PhD (Economics), Associate Professor of Department of Finance and Crediting, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine
The Influence of the Capital Structure on the Efficiency of Communal Enterprises of Passenger Transport
Annotation. Introduction. The article considers the influence of the capital structure on the efficiency of communal enterprises of passenger land transport. It is revealed that the return on assets of municipal transport enterprises of Ukraine is lower in comparison with other transport enterprises. The analysis of profitability of assets of the largest municipal enterprises of passenger land transport of Ukraine is carried out.
Purpose. It is determined that the activities of enterprises are financed by equity and tend to reduce the share of this item of liabilities in the balance sheet. The dynamics of changes in current and absolute liquidity ratios was estimated and it was found that the average values of current liquidity ratios exceeded the recommended value by 100%. The deterioration of the financial condition of utility companies for passenger land transport has been proved by analyzing the indicators of absolute and rapid liquidity.
It is substantiated that equity is the main source of financing the activities of municipal enterprises of passenger land transport. The negative impact of the growth of the share of borrowed capital on the return on assets is characterized.
Results. The usage of a linear regression model is proposed to confirm the assumption about the relationship between the profitability of enterprises with their capital structure. To build the econometric model, return on assets was determined as a dependent value, and as factors — the share of current liabilities in the balance sheet currency and the share of long-term liabilities in the balance sheet currency.
Conclusions. Trends in the change of financial condition are revealed and a model of panel data with fixed effects is built. The importance of choosing a model with fixed effects of panel data is substantiated. The regularities of the influence of the capital structure on the efficiency of communal enterprises of passenger land transport of Ukraine are proved.
Keywords: equity; sources of financing; liquidity, capital structure; public transport.
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Received: 05 December 2020
How to quote this article?
|Petruk O., Trusova N., Polchanov A., Dovgaliuk V. (2020). The Influence of the Capital Structure on the Efficiency of Communal Enterprises of Passenger Transport. Modern Economics, 24(2020), 132-137. DOI: https://doi.org/10.31521/modecon.V24(2020)-21.|