New approaches to the analysis of efficiency of enterprise’s equity capital management

Abstract

Introduction. Under the circumstances of financial crisis and the deficit of current assets availability of financial resources is one of the determining factors in the development of enterprises, and the effectiveness of the company is directly dependent on how quickly the funds invested in assets are converted into real money. That is why equity capital management is very important.

Purpose. The article aims to systematize modern methods of evaluating the effectiveness of equity capital management of the enterprise.

Method. To achieve this goal using abstract logical analysis of the essence equity capital management  of the enterprise was researched, with the help of comparative analysis methods of evaluation were investigated, a visual representation of statistical data was researched using tabular methods of analysis. A systematic analysis of the results will enable management to identify general trends of equity capital.

Results. The essence of capital equity management of the enterprise and its components were determined. The structure of capital equity  of domestic enterprises was analysed. The research revealed that such equity capital components  as Share capital and Additional capital currently dominate. Share of retained earnings, which is the basis for the growth of equity capital is insignificant. The essence of the main methods of equity capital efficiency was shown e. g. horizontal, vertical, comparative, integral methods. The basic performanceof equity capital were presented. The figures more fully characterizing the efficiency and equity capital were shown. It is proved that the integrated method of analysis of management equity is a high priority. Research highlights the necessity of continuous monitoring of the formation of the equity capital in the sphere of undistributed earnings. It is indicated that one of the most promising areas of the increase in equity capital is innovation. Further studies will cover the formation mechanism of effective equity capital management of the enterprise.