Capital structure: professional management guidance

Abstract: 2008),"The relationship between capital structure and ownership structure: New evidence from Jordanian panel data", Managerial Finance, Vol. 34 Iss 12 pp. 919-933 http://dx.If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald i… Show more

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Order By: Relevance Introduction 2 Contributions To Mineralization 1 Pendahuluan 1 Supporting Mentioning Contrasting Unclassified Self Cite 0 Independent 9 Export report Add to dashboard
Cited by 18 publication s
( 14 citation statement s )
References 35 publication s
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“…Then, a corresponding financial risk premium resulting from debt is determined. The indicator showing the ability of servicing debt is used here-times interest earned (TIE) (used by renowned rating agencies, such as Standard & Poor's and Moody's Investors Service)-which measures the relation of operating income and cost of servicing debt capital [22] :…”

Section: Contributions To Mineralization mentioning confidence: 99%

Expected Return on Capital in Mining Industry

Capital is a necessary element of each economic activity. In the enterprises functioning in capital-consuming industries, such as mining industry, the problem of capital becomes more complex and is followed by a number of problems. Investors (both owners and creditors) expect the return on invested capital, taking into consideration the risk level connected with the activity that is to be financed by them. The problem raised in this work is related to the determination of the ways of calculation of the expected return on capital from the point of view of capital provider, with the inclusion of the specificity of mining industry. The universal calculation methods in use are difficult to be applied in the enterprises from mining industry because of the specific character of risk emerging in these enterprises, unique character, and high capital consumption. The author suggests modification of one of the most popular methods and presents her own, new solutions in this area, adjusted to the specificity of mining enterprises. The solutions presented allow a more realistic look on the issue of financing mining activity.

“…Then, a corresponding financial risk premium resulting from debt is determined. The indicator showing the ability of servicing debt is used here-times interest earned (TIE) (used by renowned rating agencies, such as Standard & Poor's and Moody's Investors Service)-which measures the relation of operating income and cost of servicing debt capital [22] :…”

Section: Contributions To Mineralization mentioning confidence: 99%

Expected Return on Capital in Mining Industry

Capital is a necessary element of each economic activity. In the enterprises functioning in capital-consuming industries, such as mining industry, the problem of capital becomes more complex and is followed by a number of problems. Investors (both owners and creditors) expect the return on invested capital, taking into consideration the risk level connected with the activity that is to be financed by them. The problem raised in this work is related to the determination of the ways of calculation of the expected return on capital from the point of view of capital provider, with the inclusion of the specificity of mining industry. The universal calculation methods in use are difficult to be applied in the enterprises from mining industry because of the specific character of risk emerging in these enterprises, unique character, and high capital consumption. The author suggests modification of one of the most popular methods and presents her own, new solutions in this area, adjusted to the specificity of mining enterprises. The solutions presented allow a more realistic look on the issue of financing mining activity.

“…Hal ini memicu perusahaan untuk berusaha mengambil kebijakan praktik struktur modal yang optimal. Stretcher & Johnson (2011) menyebutkan bahwa terdapat beberapa gagasan yang dapat membentuk dasar kebijakan praktik struktur modal. Sistem tata kelola perusahaan mengarah kepada kumpulan peraturan dan dorongan yang digunakan pihak manajemen untuk mengarahkan dan mengawasi jalannya kegiatan perusahaan.…”