Theoretical aspect of determining the financial management of the enterprise’s equity capital

Abstract

The introduction of effective financial management of equity capital into the system of preventive management of the enterprise is one of the key components of the development of enterprises. This question is especially relevant in the context of modern economic conditions, when the activities of enterprises are affected by factors of the unfavorable external environment and changing market conditions.Financial management of equity capital covers a wide range of tools and criteria, ranging from profit distribution to the formation of reserves to optimize the equity capital structure. These aspects of financial management reflect the complexity and importance of decisions made by the enterprise’s management, and determine its financial stability and competitiveness in the market. Ensuring stable development, in particular in matters of bankruptcy prevention and reorganization, is impossible without effective financial management of equity.