The practice of capital structure choice in the Czech Republic : a comparative study based on the global data

• Autorzy: Lenka Strýčková
• Języki publikacji: EN

Abstrakty

EN

The aim of this contribution is to reveal the general practice in corporate financing in the Czech Republic, capital structure choice in particular, by means of comparison with the global data. The comparative study is based on primary data from the Czech Republic obtained via a questionnaire survey, and comparison with the data from various countries in Europe and America published in empirical surveys since 2001. The crux of this comparison is the use of the same questions that were used by Graham and Harvey for the first time in 2001. Unlike the original study, which examined several aspects of corporate finance in a single country, this study is focused on the cross-country comparisons of views on determinants of capital structure. The study revealed both differences and similarities between Czech, American and European companies. As the most important factor affecting the choice of the appropriate amount of debt for Czech respondents was "Financial flexibility", likewise in the other countries. Surprisingly, the tax advantages are not considered to be of a high importance to Czech firms and a striking proportion of respondents have no target debt ratio; such results weren't found by any previous study. (original abstract)

Słowa kluczowe

EN

Capital structure; Corporate finance; International comparisons; Debt

PL

Struktura kapitału; Finanse korporacji; Porównania międzynarodowe; Dług

• Czasopismo: Journal of International Studies
• Rocznik: 2017
• Tom: 10
• Numer: nr 2
• Strony: 185--203

Twórcy

autor

Lenka Strýčková

• Technical University of Liberec, Czech Republic

Bibliografia

• Archbold, S. & Lazaridis, I. (2010). Capital structure decisions and decision making: survey evidence from the UK and Greece. In: Seventeenth Annual Conference of the Multinational Finance Society. Spain: Barcelona.
• Bancel, F. & Mittoo, U. R. (2004). Cross-Country Determinants of Capital Structure Choice: A Survey of European Firms. Financial Management, 33(4), 103-132.
• Benetti, C. & Decourt, R. & Terra, P. (2007). The practice of corporate finance in Brazil and in the USA: comparative survey evidence. Anais: VII Encontro Brasileiro de Finanęas. Sao Paulo.
• Benetti, C. & Decourt, R. & Terra, P. (2007). The practice of corporate finance in an emerging market: preliminary evidence from the Brazilian survey. Annual Meeting of the Financial Management Association.
• Brace, I. (2013). Questionnaire Design: How to Plan, Structure and Write Survey Material for Effective Market Research. Longon: Kogan Page.
• Brealey, R. A. & Myers, S. C. (1996). Principles of corporate finance. New York: McGraw-Hill.
• Brounen, D. & de Jong, A. & Koedijk, K. (2004). Corporate Finance in Europe Confronting Theory with Practice. EFA 2004 Maastricht Meetings Paper No. 2769.
• Brounen, D. & de Jong, A. & Koedijk, K (2006). Capital structure policies in Europe: Survey evidence. Journal of Banking, 30(5), 1409-1442.
• Fama, E. F. & French, K. R. (2002). Testing trade-off and pecking order predictions about dividends and debt. The Review of Financial Studies, 15(1), 1-33.
• Fischer, E.O. & Heinkel, R. & Zechner, J. (1989). Dynamic capital structure choice: theory and tests. Journal of Finance, 44, 19-40.
• Graham, J. R. & Harvey, C. R. (2001). The theory and practice of corporate finance: evidence from the field. Journal of Financial Economics, 60(2-3), 187-243.
• Khan, M. Y. & Jain, P. K. (2007). Basic Financial Management. New Delhi: Tata McGraw-Hill Education.
• Kohli, A. & Sharma, J. K (2015). Survey of Corporate Financial Behavior of Indian MNCs. International Journal of Finance & Accounting Studies, 3(1), 12-27.
• Miller, M. H. & Modigliani, F. (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 48(3), 261-297.
• Myers, S.C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5, 147-175.
• Myers, S. C. & Majluf, N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.
• Myers, S.C. (2003). Financing of Corporations. in Constantinides, G.M., Harris, M. and Stultz, R.M. (Eds). Handbook of Economics and Finance (Chapter 3), New York: Elsevier.
• Shyam-Sunder, L. & Myers, S. (1999). Testing static tradeoff against pecking order models of capital structure. Journal of Financial Economics, 51, 219-244.

Identyfikatory

DOI

10.14254/2071-8330.2017/10-2/14