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THE IMPACT OF CAPITAL STRUCTURE AND RISK MANAGEMENT ON MINIMIZING THE WEIGHTED AVERAGE COST OF CAPITAL IN JOINT-STOCK COMPANIES

📘 Volume 14 📄 Issue 1 📅 January 2026

👤 Authors

Obidov Sanjar Omonkhodjayevich 1
1. Independent Researcher, Kimyo International University in Tashkent, Finance, Uzbekistan

📄 Abstract

This study examines the influence of capital structure configuration and integrated risk management practices on minimizing the weighted average cost of capital (WACC) in joint-stock companies. The research is grounded in contemporary corporate finance theory and emphasizes the strategic interaction between debt-equity optimization and systematic risk mitigation in enhancing firm-level financial efficiency. Using a panel dataset of joint-stock companies operating in emerging and transitional economies, the study applies econometric modeling techniques, including fixed-effects regression and dynamic panel estimation, to assess the causal relationship between leverage ratios, risk exposure indicators, and variations in WACC. The findings reveal that an optimal balance between long-term debt and equity financing significantly reduces capital costs when supported by proactive risk management mechanisms such as credit risk monitoring, liquidity buffers, and market risk hedging.

🏷️ Keywords

Capital Structure Weighted Average Cost of Capital (Wacc) Risk Management Joint-Stock Companies Financial Stability Corporate Value Leverage Optimization Emerging Markets

📚 How to Cite:

Obidov Sanjar Omonkhodjayevich , THE IMPACT OF CAPITAL STRUCTURE AND RISK MANAGEMENT ON MINIMIZING THE WEIGHTED AVERAGE COST OF CAPITAL IN JOINT-STOCK COMPANIES , Volume 14 , Issue 1, January 2026, International Journal of Asian Economic Light (JAEL) ,

🔗 PDF URL

https://cdn.epratrustpublishing.com/article/202601-15-025915.pdf

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