Capital as an economic category in the contemporary management theory

S. Buyanskij, O. Mazilina, A. Kemenov

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Abstract

The article discusses theoretical aspects of capital management in the oil and gas companies. It also analyzes the classical definition of capital. Being the bearer of the company financial liquidity, capital creates the conditions for its reinvestment. The level of liquidity is determined by calculating the ratio of the financial liquidity and shows how long invested in the business capital can be converted into cash without losing its real market value. The shorter the period, the higher liquidity has the direction to use it in business. Based on all of the characteristics given to this definition, the article summarizes the essence of the concept of capital. Capital is seen as an object of management, a source of financing, as well as a management tool for the financial and economic activities of the company. Capital is a public good, which has high economic value; capital is in constant motion in the process of effective governance that creates additional income to its owner. The authors conclude that the use of the own equity limits the opportunities for the growth, while the reasonable involvement of the loan capital creates objective conditions for further development.

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