Differences in the Financial Structure of Slovak and Czech Enterprises Operating in Machinery Manufacturing and Equipment Industry

• Autorzy: Lenka Kalusova , Peter Badura
• Języki publikacji: EN

Abstrakty

EN

The paper offers a thorough study of the selected factors influencing the financial structure of Slovak and Czech companies operating in the machinery and equipment industry. These factors were broken down into internal factors (profitability, company size, liquidity, assets' structure, business risk, non-debt tax shield and company's age) and the external factors (economic cycle, inflation, interest rate and tax rate). The aim of the paper was to analyze, evaluate and assess whether there were differences in the influence of these factors (i.e. different direction and intensity of their impact) on the financial structure of Slovak and Czech enterprises. The analysis was done for the years 2014 - 2018. The multiple regression analysis was used as the main research method. The research results pointed to the fact that the financial structure of Slovak and Czech companies was affected mainly by the influence of internal corporate factors, and moreover, there were also certain differences between Slovak and Czech enterprises - not only in intensity but even in the direction of action of these factors. Given the internal structure of financing sources and based on our findings, our recommendations were that in the area of financial structure of enterprises, they should focus their attention primarily on corporate liquidity (Slovak enterprises in particular). At the same time, it was clear that the government policy should focus on improving law enforcement in trade relations and also improving the protection of creditors' rights, as business loans were the most used external sources of funding. (original abstract)

Słowa kluczowe

EN

Financial structure; Corporation; Enterprise environment; Industry; Industrial enterprises

PL

Struktura finansowa; Korporacje; Otoczenie przedsiębiorstwa; Przemysł; Przedsiębiorstwo przemysłowe

• Czasopismo: Journal of International Studies
• Rocznik: 2020
• Tom: 13
• Numer: nr 1
• Strony: 155--169

Twórcy

autor

Lenka Kalusova

• University of Economics in Bratislava, Slovakia

autor

Peter Badura

• University of Economics in Bratislava, Slovakia

Bibliografia

• Archer, S., & Karim, R. A. A. (2013). Islamic Finance. The New Regulatory Challenge. Singapore, John Wiley and Sons Singapore Pte. Ltd.
• Ameer, R. (2013). Financial liberalization and firms' capital structure adjustments evidence from Southeast Asia and South America. Journal of economics and finance, 37(1), 1-32. doi: 10.1007/s12197-010-9158-3.
• Bajramovič, A. (2017). Firm-specific determinants of capital structure - case of firms in Bosnia and Hercegovina. Advances in Business-Related Scientific Research Journal, 8(2), 13-24.
• Bajus, R. (2008). Vývoj kapitálového trhu v SR/Development of the capital market in Slovak Republic. Biatec, 16(12), 16-20.
• Bauer, P. (2004). Determinants of Capital Structure - Empirical Evidence from the Czech Republic. Finance a úvěr/Czech Journal of Economics and Finance, 54(1-2), 2-21.
• Belás, J., Bartoš, P., Habánik, J., & Novák, P. (2014). Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises. Economics and Sociology, 7(3), 22-39. doi: 10.14254/2071-789X.2014/7-3/2.
• Belás, J., Bilan, Y., Demjan, V., & Sipko, J. (2015). Entrepreneurship in SME Segment: Case Study from the Czech Republic and Slovakia. Amfiteatru Economic, 17(38), 308-326.
• Bevan, A. A., & Danbolt, J. (2002). Capital Structure and its Determinants in the United Kingdom - A Decompositional Analysis. Applied Financial economics, 12(3), 159-170. doi: 10.1080/09603100110090073.
• Bhaird, C., & Lucey, B. (2010). Determinants of Capital Structure in Irish SMEs. Small Business Economics, 35(3), 357375. doi: 10.1007/s11187-008-9162-6.
• Bokpin, G. A. (2009). Macroeconomic Development and Capital Decisions of Firms - Evidence from Emerging Market Economies. Studies in Economics and Finance, 26(2), 129-142. doi: 10.1108/10867370910963055.
• Booth, L., Aivazian, V., Demirguc-Kunt, A., & Maksimovic, V. (2001). Capital Structures in Developing Countries. The Journal of Finance, 56(1), 87-130. doi: 10.1111/0022-1082.00320.
• Clayman, M. R., Fridson, M. S., & Troughton, G. H. (2008). Corporate Finance. A Practical Approach. New York, John Wiley & Sons.
• DeAngelo, H., & Masulis, R. (1980). Optimal capital structure under corporate and personal taxation. Journal of Financial Economics, 8(1), 3-30.
• Demirgüc-Kunt, A., & Maksimovic, V. (1998). Law, finance, and firm growth. The Journal of Finance, 53(6), 2107-2137. doi: 10.1111/0022-1082.00084.
• Drobetz, W., & Fix, R. (2003). What are the Determinants of the Capital Structure? Some evidence of Switzerland. Working paper No. 4/30.
• Faccio, M., & Xu, J. (2015). Taxes and Capital structure. Journal of financial and Quantitative analysis, 50(3), 277-300. doi:10.1017/S0022109015000174.
• Frank, M. Z., & Goyal, V. K. (2009). Capital Structure Decisions: Which Factors are Reliably Important? Financial Management, 38(1), 1-37. doi:10.1111/j.1755-053X.2009.01026.x.
• Hailu, G., Jeffrey, S., & Goddard, E. (2007). Capital Structure, Firm size and efficiency: The Case of Farm Petroleum and Animal Feed Co-operatives in Canada. Agricultural Finance Review, 67(2), 279-293. doi:10.1108/00214660780001.
• Hall, G., Hutchinson, P., & Michaelas, N. (2000). Industry Effects on the Determinants of Unquoted SMEs Capital Structure. International Journal of the Economics of Business, 7(3), 297-312. doi: 10.1080/13571510050197203.
• Harrison, B., & Widjaja, T. W. (2014). The Determinants of Capital Structure: Comparison between Before and After Financial Crisis. Economic Issues, 19(2), 55-82.
• Herciu, M., & Ogrean, C. 2017. Does capital structure influence company profitability? Studies in Business and Economics,12(3), 51-63. doi:10.1515/sbe-2017-0036.
• Heyman, D., Deloof, M., & Ooghe, H. (2008). The Financial Structure of Private Held Belgian Firms. Small Business Economics, 3(3), 301-313. doi:10.1007/s11187-006-9031-0.
• Hrvoľová, B., & Badura, P. (2014). Analýza finančných trhov: praktikum/Financial markets analysis: Pactice. Bratislava, Vydavateľstvo EKONÓM.
• Jaisinghani, D., & Kanjilal, K. (2017). Non-linear dynamics of size, capital structure and profitability: Empirical evidence from Indian manufacturing sector. Asia Pacific Management Review, 22(3), 159-165. doi: 10.1016/j.apmrv.2016.12.003. doi: 10.1016/j.apmrv.2016.12.003.
• Jõeveer, K. (2005). What Do We Know about the Capital Structure of Small Firms. Working paper series. Praha, CERGE-EI.
• Jõeveer, K. (2006). Sources of Capital Structure: Evidence from Transition Countries. Working paper series. Prague, CERGE-EI.
• Jong, A., Kabir, R., & Nguyen, T. T. (2008). Capital Structure around the World: The Roles of Firm- and Countryspecific Determinants. Journal of Banking and Finance, 32(9), 1954-1969. doi: 10.1016/j.jbankfin.2007.12.034.
• Kakilli Acaravci, S. (2015). The Determinants of Capital Structure: Evidence from the Turkish Manufacturing Sector. International Journal of Economics and Financial Issues, 5(1), 158-171.
• Kalusová, L. (2015). Dopady podnikateľského prostredia na rozhodovanie o finančnej štruktúre malých a stredných podnikov/ The Impact of business environment on financial structure decisions of SMEs. Ekonomika a manažment/Economics and Management, 12(1), 25-37.
• Klapper, L. F., Sarria-Allende, V., & Sulla, V. (2002). Small and Medium-size Enterprise Financing in Eastern Europe. Retrieved March 15, 2018, from https://pdfs.semanticscholar.org/5032/57deb5d3249defb83766f101af618a70c328.pdf
• Korajaczyk, R. A., & Levy, A. (2003). Capital Structure Choice: Macroeconomic Conditions and Financial Constraints. Journal of Financial Economics, 68(1), 75-109. doi: 10.1016/S0304-405X(02)00249-0
• Kozubíková, L., Belás, J., Bilan, Y., & Bartoš, P. (2015). Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment. Economics and Sociology, 18(1), 41-54. doi: 10.14254/2071- 789X.2015/8-1/4.
• Krištofík, P. (2002). Determinanty kapitálovej štruktúry a finančného rozhodovania v podmienkach slovenských podnikov/ Determinants of capital structure and financial decision-making in Slovak enterprises. Ekonomický časopis/Journal of Economics, 50(2), 197-216.
• Moosa, I., & Li, L. (2012). Firm_specific Factors as Determinants of Capital Structure: Evidence From Indonesia. Review of Pacific Basin Financial Markets and Policies, 15(2), 1-17. doi: 10.1142/S021909151150007X.
• Nguyen, T. D. K., & Ramachandran, N. (2006). Capital Structure in Small and Medium-sized Enterprises: The Case of Vietnam. ASEAN Economic Bulletin, 3(2), 192-211. doi: 10.1353/ase.2007.0006.
• Nivorožkin, E. (2004). The Dynamics of Capital Structure in Transition Economies. Economics of Planning, 37(1), 25-45. doi: 10.1007/s10644-004-1056-2.
• Öztekin, O. (2015). Capital structure decisions around the World: which factors are reliably important? Journal of financial and quantitative analysis, 50(3), 301-323. doi: 10.1017/S0022109014000660.
• Pacáková, V. et al. (20093). Štatistika pre ekonómov/Statistics for Economists. Bratislava, edícia EKONÓMIA.
• Prášilová, P. (2012). Determinanty kapitálové struktury českých podniků/Determinants of capital structure within Czech companies. E + M. Ekonomie a management/E+M Economics and Management, 15(1), 89-104.
• Ramalho, J. S., & da Silva, J. V. (2009). A two-part fractional regression model for the financial leverage decisions of micro, small, medium and large firms. Quantitative Finance, 9(5), 621-636. doi: 10.1080/14697680802448777.
• Režňáková, M., Svoboda, P., & Polednáková, A. (2010). Determinants of Capital Structure: Empirical Evidence from Slovakia. Ekonomický časopis/Journal of Economics, 58(3), 237-250.
• Salameh,H. M., Al-Zubi, K. A., & Al-Zu'bi, B. (2012). Capital Structure Determinants and Financial Performance - Analytical Study in Saudi Arabia Market 2004-2009. International Journal of Economic Perspective, 6(4), 18-33.
• Singla, R. K. (2008 - 2009). Business Studies. New Delhi, V. K. Enterprises.
• Sivák, R. (2001). Kapitálová a finančná štruktúra, zadlženosť a platobná neschopnosť - problémy podnikovej sféry v Slovenskej republike/ Capital and financial structure, insolvency and debts problems of corporate sphere in the Slovak Republic. Ekonomika a spoločnosť/The Journal of economics and social research, 2(2), 140-148.
• Sogorb-Mira, F. (2005). How SME uniqueness affects capital structure: Evidence from a 1994-1998 Spanish data panel. Small Business Economics, 25(5), 447-457. doi:101007/s11187-004-6486-8.
• Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. The Journal of Finance, 43(1), 1-19. doi:10.1111/j.1540-6261.1988.tb02585.x.
• Vatavu, S. (2013). Determinants of Corporate Debt Ratios: Evidence from Manufacturing Companies Listed on the Bucharest Stock Exchange. Timisoara Journal of Economics and Business, 6(20), 99-126.

Identyfikatory

DOI

10.14254/2071-8330.2020/13-1/10