RŮČKOVÁ, Petra and Tomáš HERYÁN. THE CAPITAL STRUCTURE MANAGEMENT IN COMPANIES OF SELECTED BUSINESS BRANCHES OF BUILDING IN CONDITIONS OF THE CZECH REPUBLIC. Prague Economic Papers. PRAGUE 3: UNIV ECONOMICS-PRAGUE, vol. 24, No 6, p. 699-714. ISSN 1210-0455. 2015.
Other formats:   BibTeX LaTeX RIS
Basic information
Original name THE CAPITAL STRUCTURE MANAGEMENT IN COMPANIES OF SELECTED BUSINESS BRANCHES OF BUILDING IN CONDITIONS OF THE CZECH REPUBLIC
Authors RŮČKOVÁ, Petra and Tomáš HERYÁN.
Edition Prague Economic Papers, PRAGUE 3, UNIV ECONOMICS-PRAGUE, 2015, 1210-0455.
Other information
Original language English
Type of outcome Article in a journal
Confidentiality degree is not subject to a state or trade secret
Organization unit School of Business Administration in Karvina
UT WoS 000368049700005
Keywords in English capital structure; return on equity; debt/equity ratio; domestic and foreign owners; GMM panel regression
Changed by Changed by: doc. Ing. Petra Růčková, Ph.D., učo 48730. Changed: 21/10/2021 11:29.
Abstract
Current paper has focused on the capital structure management theories. The theoretical part of the study firstly highlights the differences between trade-off theories and pecking order theories. In the empirical part there are then proved some significant relationships between financial indicators (debt/equity ratio and return on equity) of homogenous data sample from the Czech branch of building area. The aim of the study is to prove the differences between the capital structure development that are based on the type of the Czech companies' ownership in the selected NACE industrial branch and to point out some other particularities. The contribution of the paper is a comparison of the theory as well as practice of this issue in the Czech Republic. For pooled sample there are used selected financial indicators of 57 building companies, all with turnover of more than CZK 1.5 billion. The choice of this criterion was a result of a change in efficiency in Czech economy observed in the selected period. We can assume that this factor will have low influence on the selection of financial resources of large corporations. We may even say that for large companies the availability of financial resources remain unchanged. We have obtained annual data from 2004 to 2011. Due to such short estimation period, but the width of pooled sample on the other hand, it is used generalized method of moments (GMM) panel regression. There are also arguments of motivation to analyse business branch of building specifically. Moreover, an analysis is split according to ownership of companies into two categories, for the Czech and foreign owners. Based on the recent literature there has been made and tested three hypotheses. Results of the article have clearly proved the separation of managers from owner's positions. On the top of that, domestic companies are not pushed to distribute the realized profit so much as foreign owners that prefer the return of their means invested into business. There is also a suggestion of future interests in research focused on other Czech business branches, too.
PrintDisplayed: 29/3/2024 02:42