Abstract

The purpose of this study is to know the impact of the capital increase of the economic enterprise on its market value with regard to the risk of bankruptcy, which increases with the increasing recourse to debt. that is, how the institution can balance shareholder demand to maximize returns and the opportunity for owners to minimize risk while raising capital. The study concluded that the optimal borrowing volume is the level at which the difference between the present value of tax savings and the present value of the cost of bankruptcy is maximum, at this stage, the optimal financial structure of the is determined at its maximum market value, after which any change in the size of the debt increases the difference between the present value of the tax savings and the present value of the cost of the bankruptcy, which increases the cost of financing and reduces the value of the business.
Key words: capital increase, market capitalization, value added, cost of capital, return on investment, risk of bankruptcy, stop payments.

Information

Item Type:	Thesis
Divisions:	» Faculty of Economic, Commercial and Management Sciences
ePrint ID:	2031
Date Deposited:	2019-11-26
Further Information:	Google Scholar
URI:	https://www.univ-soukahras.dz/en/publication/article/2031

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