Assurance of Business Viability through Equity Sufficiency

摘要

The aim of the research is to develop the approach to management of the level of equity sufficiency, which can be applied towards the solution of particular problems of business viability. The authors suggest the algorithm for improving the business viability through the equity sufficiency by means of adjusted financial leverage effect. Its applicability is proved by results of analysis of statistical data on Latvian companies. Suggested approach to management of the level of equity sufficiency can be considered as an effective tool for achieving company's viability.