Open AccessFormation of funding sources for agribusiness organizations
Author(s) -
Oscar Gasanov,
Tatiana Lisitskaya,
Natalya Kovaleva,
Valentina Maziy,
Irina Mitina
Publication year - 2019
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/403/1/012075
Subject(s) - agribusiness , hierarchy , business , agriculture , capital structure , capital (architecture) , debt , return on capital , capital formation , finance , financial capital , economics , market economy , human capital , ecology , history , biology , archaeology
The paper is devoted to summarizing the experience of forming sources of funding in emerging markets and analyzing the efficiency of capital use using the example of agricultural enterprises in the South of Russia. The literature review covers studies revealing the determinants of the formation of sources of capital funding in both developed and emerging markets. It is noted that the features of the establishment of business structures and the country’s financial system are factors in the choice of hierarchy theory by the management of companies in the formation of capital structure. A study of the impact of the weighted average cost of capital on return on assets was carried out using the example of agricultural enterprises in the South of Russia. The obtained results confirm the developed hypotheses about the negative impact of an increase in the volume of debt financing of agribusiness organizations on the return on assets, as well as about the choice of a conservative agricultural policy by agricultural organizations in forming funding sources. These results are close to the results of applied research on the formation of capital structure in other sectors of the Russian economy.