Abstract
The prevailing view is that the optimal capital structure is one that maximises the financial performance and market value of the company. The research question that I am investigating is at what equity ratio this state occurs. There is still no unified position in this field, and the research results also show significant differences between regions, industries, and company types. The objective of this study is to contribute to the existing international and domestic literature by examining the capital structure of domestic small and medium-sized companies. The data for this study was collected from a sample of 921 companies. The results indicate that the advantages and value-enhancing effects of foreign capital as described in traditional capital structure theories cannot be observed in the case of the examined domestic SMEs. Furthermore, the highest market value is realised with full self-financing (100% capital strength). Another significant outcome of the analysis is that an increase in capital strength not only enhances the total market value of equity but also the value of equity per unit of statistical staff, thereby improving the company’s value creation efficiency.