Respondent
Theme
The financial restructuring of power supply corporations of Ukraine as the way to increase their efficiency
Defence Date
Annotation
In the dissertation theoretical and methodological foundations of the financial
restructuring of power supply corporations of Ukraine are deepened, also scientific
and practical recommendations to improve their efficiency are developed. The
evolution of approaches of evaluating the effectiveness of corporation’s activity is
tracked. The value-oriented indicator of the change in shareholders’ welfare for the
period is proposed.
Current theoretical and methodological approaches to the essence of the
financial restructuring of corporations are generalized, financial and managerial
approaches are highlighted. The interconnection between the restructuring of the
financial structure and the effectiveness of corporation’s activity is found. It is
suggested to use the modified six-factor Du Pont model to assess the impact of
financial restructuring on the corporation’s effectiveness.
Trends of the financial structure development are investigated, significant
structural imbalances in it are detected. The rate costs on equity is calculated by using
the modified CAPM model (Capital Assets Pricing Model), the rate costs of
borrowed capital is calculated by using the CDS model (Corporate Default Spread
Model). Described modified CAPM model takes into account the effect of a greater
number of factors that determine the cost of capital on emerging markets and ensures
a correct estimate of the equity value in absences of reliable information from
emerging markets.
The indicators of the effectiveness of power supply corporation’s activity are
analyzed. The possibilities of using the management approach to financial
restructuring on the basis of the algorithm of actions for building the structure of
financial management are revealed. The optimization opportunities of the
corporation’s capital structure by the criterion of capital cost’s minimization are
determined, based on the modeling of different variants of capital structure.
Expediency and possibilities of using innovative methods of the financial
restructuring of power supply corporations of Ukraine are proved in order to improve
their performance. Debt conversion method, public and private public offering of
additional shares, denomination of shares, placement of depositary receipts and
securitization of debt for electricity are referred to the most promising methods of
financial restructuring power supply corporations of Ukraine.
Keywords: power supply corporations of Ukraine, financial restructuring, rate
costs on equity, shareholders welfare, economic value added, issue of securities, debt
securitization, debt conversion, denomination of shares.