COST OF CAPITAL AS AN ENDOGENOUS FACTOR IN THE FORMATION OF CORPORATE FINANCIAL STRATEGY
Abstract
The article develops a theoretical and methodological approach to the formation of an enterprise's financial strategy, taking into account the cost of capital as an endogenous factor. The relevance of the topic is due to the need to rethink the role of the cost of capital in managing the finances of enterprises in the conditions of growing uncertainty and complexity of financial markets. The traditional interpretation of the cost of capital as an exogenously given parameter limits the possibilities of strategic management, while modern approaches indicate its dependence on internal management decisions. The purpose of the article is to theoretically substantiate and develop a model of the enterprise's financial strategy, within which the cost of capital is considered as a partially endogenous variable. The methodological basis of the study is the methods of theoretical generalization, system analysis, comparative analysis of scientific approaches, as well as logical modeling for building conceptual and optimization models of financial strategy. Approaches to corporate finance are used, in particular the theory of capital structure, agency relations and information asymmetry. The study substantiates the evolution of approaches to the interpretation of the cost of capital - from exogenous to endogenous. The presence of a stable relationship between the internal characteristics of the enterprise and the level of the weighted average cost of capital is established. It is proven that the key mechanism of influence is risk, which has a multidimensional structure and, as a result of a change in the risk profile, is transformed into investors' requirements for profitability. A conceptual model of the formation of a financial strategy is proposed, which integrates exogenous and endogenous factors, as well as an optimization model that considers the profitability of invested capital and the weighted average cost of capital as functions of the strategic choice of the enterprise. The practical value of the results obtained lies in the possibility of using the proposed model as an analytical basis for making financial decisions, optimizing the capital structure, risk management and increasing the effectiveness of the financial strategy in order to maximize the value of the enterprise.
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