Optimal Indebtedness of the Concrete Firm in the Passive Way of Optimizing

Abstract

The aim of this article is to analyze the problem of optimizing of the capital structure of the concrete firm in the passive way of optimizing and to find some possible branch standards in the chosen branches. The most important problem in the theory of optimizing is to identify the theory which best fit and in practice it is necessary to cope with some application problems which results from the use of the concrete theory. The firm in fact has to decide firstly if to start the process of active optimizing or if it is satisfied with the passive way of optimizing by respecting the branch standards or by respecting the Pecking Order Theory. In case of branch standards the firm is trying to come near the average indebtedness in some concrete branch and in case of the Pecking Order Theory the firm follows the recommendations of this theory and use firstly the internal financial sources, then debt and finally the equity. The most important application problem in case of using the branch standards is the identification of the average indebtedness in some concrete branch and to judge if this average indebtedness is possible to use as this standard or if it is necessary to adjust this amount according to the other factors. In case of using the Pecking Order Theory it is necessary for the firm to have all financial sources available otherwise the process of optimizing means only findings actually any kind of financial source. The concrete branches were chosen and some concrete data were analyzed. It was found out that the branch standards are relatively complicated way of optimizing of the capital structure of the firm, but relatively feasible. The branch standards on the level of 50 % of indebtedness were recommended for the branch of Beverages and Construction Supplies, on the level of 45 % for the branch of Railroads, on the level of 40 % for the branch of Electrical Equipment and on the level of 35 % for the branch of Machinery.