Received: 2018-05-15  |  Accepted: 2018-10-22  |  Published: 2018-12-30

Title

The ability of listed companies to optimize their capital structure, shape their distribution policy and fight hostile takeovers by repurchasing their own shares


Abstract

The management of listed companies is faced with the decision to distribute the annual surplus to the shareholders in total or to reinvest it in order to achieve the company's goals in order to sustain the continued existence and growth of the company. In order to avoid a conflict of interest between the various parties of a stock corporation, compensation must be found so as not to jeopardize the company's goals and priorities. An optimization of the capital structure and a balanced dividend policy should contribute to the satisfaction of all stakeholders of a company. This article investigates the possiblity by using a share buy-back programm, a kind of capital reduction, as a strategic measures to reach both oft he goals. Sustainability in terms of financial stability should be at the forefront of management and ownership.


Keywords

Buy-Back Program, reconciliation of interests, capital reduction, optimal capital structure, distribution policy, hostile takeover


JEL classifications

G32 , G34 , G35 , G38


URI

http://jssidoi.org/jesi/article/243


DOI


Pages

636-648


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Schwarz, Daniel
Pan-European University, Bratislava, Slovakia http://www.uninova.sk
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

2


Issue date

December 2018


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1860  |  PDF downloads: 1007

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