Equity capital: approaches to definition, classification and its structure

Abstract

The article examines the essence of the concept of "equity capital" and conceptual approaches to its definition and classification. It has been determined that the concept of "capital" has had roots since antiqu ity, and meant a source of accumulation of wealth. However, in today's conditions of the market system capital is generalizing and at the same time varied, because it covers intellectual, natural, social capital. The importance of the correct calculation of structural equilibrium, which is a guarantee of financial competitiveness, financial stability and solvency in modern fast financial, economic and legislative changes, has been substantiated. Three approaches to the classification of the structure of the enterprise according to the normativelegislative base (national and international) and practical aspect has been determined. The practical analytical analysis of the equity structure based on the financial statements of the enterprise indicates that the equity of the enterprise in the current conditions of management decreases, in particular, by increasing the uncovered loss. The advantage of debt capital in the form of payables proves the need to make optimal decisions on timely control and adjustment of the capital structure of the enterprise due to the dynamics and features of socio-economic and financial processes in Ukraine.

Keywords

• equity capital
• structure
• enterprise
• classification