D 2016

Effect of Liquidity and Profitability on Use of Debt Finance Sources in Manufacturing Industry's Companies in V4 Countries

RŮČKOVÁ, Petra

Basic information

Original name

Effect of Liquidity and Profitability on Use of Debt Finance Sources in Manufacturing Industry's Companies in V4 Countries

Name (in English)

Effect of Liquidity and Profitability on Use of Debt Finance Sources in Manufacturing Industry's Companies in V4 Countries

Authors

Edition

Karviná, p. 333-341, 2016

Publisher

Silesian University, School of Business Administration

Other information

Type of outcome

Proceedings paper

Confidentiality degree

is not subject to a state or trade secret

Publication form

electronic version available online

Organization unit

School of Business Administration in Karvina

ISBN

978-80-7510-186-0

UT WoS

WOS:00044767980

Keywords (in Czech)

likvidita, rentabilita, dluhové financování, panelová regrese, korelace

Keywords in English

liquidity, profitability,debt finances,panel regression,correlation

Tags

International impact, Reviewed
Changed: 21/10/2021 11:26, doc. Ing. Petra Růčková, Ph.D.

Abstract

ORIG EN

V originále

The analysis of impact of liquidity and profitability on use of debt finance sources is the subject of research. Investigation of just those dependences is based on the idea saying that if the use of debt finances should have positive impact on company functioning, those finances should be gained under the best conditions. Regarding the fact that in V4 countries an obtaining of the debt finances is oriented to bank sector, it is supposed that such company is to be granted the credit, whose profitability is increasing within the time and its liquidity is stable or increasing. This statement would prove the results of trade off capital structures theories. The aim of this article is to find out whether positive functional relation between independent quantities (liquidity and profitability) and dependent quantity (use of debt finances) in manufacturing industry in V4 countries within 2006 - 2013 exists.

In English

The analysis of impact of liquidity and profitability on use of debt finance sources is the subject of research. Investigation of just those dependences is based on the idea saying that if the use of debt finances should have positive impact on company functioning, those finances should be gained under the best conditions. Regarding the fact that in V4 countries an obtaining of the debt finances is oriented to bank sector, it is supposed that such company is to be granted the credit, whose profitability is increasing within the time and its liquidity is stable or increasing. This statement would prove the results of trade off capital structures theories. The aim of this article is to find out whether positive functional relation between independent quantities (liquidity and profitability) and dependent quantity (use of debt finances) in manufacturing industry in V4 countries within 2006 - 2013 exists.