Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 41 , 10 November 2023


Open Access | Article

Research on Capital Structure and Investment Value of Supermarket Industry

Haocheng Huang * 1 , Zecheng Liu 2 , Huan Zhao 3
1 Pennsylvania State University
2 Jiangsu Tianyi High School
3 Pennsylvania State University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 41, 34-40
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Haocheng Huang, Zecheng Liu, Huan Zhao. Research on Capital Structure and Investment Value of Supermarket Industry. AEMPS (2023) Vol. 41: 34-40. DOI: 10.54254/2754-1169/41/20232030.

Abstract

This paper focuses on researching the capital structure and investment value of the supermarket industry, specifically examining the impact of epidemiological events on value investment within this sector. The objective is to explore the factors that influence capital structure decisions and their implications for investment value. The analysis employs the Weighted Average Cost of Capital (WACC) method to evaluate the relationship between capital structure and investment performance in the context of the supermarket industry. The study aims to investigate the influence of epidemiological events, such as COVID-19, on the capital structure decisions of supermarket companies and their subsequent effects on investment value. The research considers factors such as the size and maturity of the companies, risk profiles, regulatory environments, and cost of capital considerations to assess their impact on capital structure choices. By utilizing the WACC method, A study of supermarket investment value and capital structure decisions is presented in this paper. The WACC approach allows for a comprehensive evaluation of the cost of debt and equity financing, incorporating factors such as interest rates, tax implications, and market conditions.

Keywords

supermarket, investment, COVID-19

References

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4. Matsa, D. A. (2011). Running on empty? Financial leverage and product quality in the supermarket industry. American Economic Journal: Microeconomics, 3(1), 137-173.

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6. Kabuye, F., Kato, J., Akugizibwe, I., & Bugambiro, N. (2019). Internal control systems, working capital management and financial performance of supermarkets. Cogent Business & Management, 6(1), 1573524.

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9. Momin, A. (2022, July 12). Retail Industry Analysis: A $28 Trillion Market. Pestleanalysis.com. https://pestleanalysis.com/retail-industry-analysis/.

10. Zisoudis, Nikolaos & Karelakis, Christos & George, Theodossiou & Loizou, Efstratios. (2020). Financial Analysis of Major Retail Chains within a Turbulent Economic Environment. Studies in Business and Economics. 15. 208-222. 10.2478/sbe-2020-0054.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-103-2
ISBN (Online)
978-1-83558-104-9
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/41/20232030
Copyright
10 November 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated