DETERMINANTS OF FINANCIAL STRUCTURE IN CZECH ENERGY COMPANIES

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F18%3A00011214" target="_blank" >RIV/47813059:19520/18:00011214 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

DETERMINANTS OF FINANCIAL STRUCTURE IN CZECH ENERGY COMPANIES

Original language description

The issue of capital structure is still a highly debated and unresolved topic in corporate finance. Most studies on this topic are addressed by companies in the United States, the United Kingdom, and other countries of predominantly Western Europe. This article deals with Czech enterprises, as they are not so often the subject of research. The paper aims to determine the influence of three determinants on the leverage ratio of energy companies during the period from 2009 to 2017. Energy companies were selected for their influence on all other industries. Moreover, the energy sector itself is affected by some factors - raw material prices, energy policy and legislation in Europe and the world. There is a survey of the relationships between the share of fixed assets, return on assets, and macroeconomic development, which is represented by GDP growth rate, on total, long-term and short-term debt of the companies. A negative relationship is expected for economic growth and more profitable firms, a positive relationship for the structure of assets. The research of the companies is performed by correlation analysis and Generalized Method of Moment in econometric software EViews. The findings of both analyses indicate a positive relationship between asset structure and almost all forms of debt. A strong relationship is observed mainly for total and short-term debt. GDP growth has a significant negative influence on total and short-term debt. Found impacts live up to expectations. Unfortunately, the impact of profitability was not proven in one case.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Conference Proceedings 11th International Scientific Conference "Karviná Ph.D. Conference on Business and Economics"

ISBN

978-80-7510-322-2

ISSN

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e-ISSN

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Number of pages

12

Pages from-to

102-113

Publisher name

SU OPF Karviná

Place of publication

Karviná

Event location

Karviná

Event date

Nov 7, 2018

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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