Corporate sustainable growth models: The impact of capital structure

Abstract

The key internal aim of each corporation is to reach the sustainable development for the long period of time. Capital structure is the one of the financial factors influenced on the sustainable growth of the corporations. The research is based on the hypothesis of the obvious impact of the capital structure on the sustainable growth of the corporation and is devoted to the issue of the corporate governance based on the models of sustainable growth in the case of manipulating the capital structure of corporations. The study is based on public financial statements of 50 Russian corporations-participants in the financial market for 2012-2018 years and is based on the use of the most well-known models of sustainable growth. It is established that by changing the share of borrowed capital in its total value, and using the mechanism of influence of factors of a certain model, make the right managerial financial decision, leading to its sustainable growth will be made by the management team of the corporation. At the same time, important factors influencing the choice of capital structure are as follows: Industry, financial stability, the balance between the rate of accumulation and amount of dividend payments, reasonable borrowing at a high level of risk.