OPTIMIZATION OF THE CAPITAL STRUCTURE OF DIVERSIFIED MILK AND DAIRY PRODUCTION ENTERPRISES IN UKRAINE

Abstract

In the context of the decline in milk and dairy production in Ukraine, the justification of the most effective mechanism for financial and investment support for realizing the production and economic potential of the national dairy subcomplex is becoming increasingly relevant. Forming an optimal capital structure is an essential factor in the effectiveness of investment activities of diversified enterprises that produce milk and dairy products, considering the main technological, financial, and economic aspects of organizing production. Accordingly, systematic optimization of the capital structure by various sources will contribute to increasing the efficiency of functioning and competitiveness of enterprises in the industry, which will contribute to the restoration and further growth of milk and dairy production in Ukraine in the long term. The study used general scientific and specialized economic research methods, namely monographic and systemic methods, calculation and constructive, analysis and synthesis, as well as economic and mathematical modelling, when determining the optimal capital structure by various most common sources of financing for newly established enterprises for the production of milk and dairy products in Ukraine. A financial model of the functioning of an enterprise that produces and processes milk was developed to simulate the optimal capital structure. The optimization was carried out according to the criterion of maximizing net present value by determining the impact of different options for the capital structure on the values of the leading indicators of the efficiency of investment use. According to the results of the study, it was established that the most optimal option for forming the capital structure for enterprises producing and processing milk in Ukraine should be based on the maximum share of own financial resources with moderate involvement of fixed capital based on financial leasing, operational leasing with the minimization of long-term loans and private investments, which will ensure a relatively high level of investment efficiency.