Branch Standards as the Possible Way of Optimizing of Capital Structure of the Concrete Firm

Abstract

This article is about the problem of optimizing of the capital structure of the concrete firm and about the possibility to use the passive way of optimizing of this capital structure on the basis of the so-called Branch standards. Branch standards are defined as some average indebtedness that the firms are trying to follow. There are a lot of theories available, but the final process of optimizing of the capital structure of the concrete firm is very complicated and it is necessary to cope with a lot of application problems. Besides Traditional theory, none of the further theories offer some concrete recommended optimal indebtedness. For that reason, the possibility to optimize the capital structure

Branch Standards as the Method of Optimizing of Capital Structure

“…The key matter for the final finding out would be the statement if the indebtedness in the last few years is relatively stabilized and if it would be possible to identify some average indebtedness and so-called branch standards as it 1 Retrieved January 31, 2018, from http:// pages.stern.nyu.edu/~adamodar. was also in the previous article (Hrdý, 2018).…”

“…This paper examines if it is possible to identify the average indebtedness and so-called branch standards. The hypothesis H 0 was confirmed and the hypothesis H 1 was rejected as it was also in the previous article (Hrdý, 2018). The key conclusion of this research consists in the fact that it is possible to identify the average indebtedness and so-called branch standards, but only in the selected branches where the tendency of the average indebtedness is relatively stabilized and where there is a minimum volatility in the last few years.…”

“…The answer to this question is not easy and for that reason the aim of this article is to judge if it is possible to identify this average indebtedness in different branches and in different countries. This article continues in the previous researches of the author published also in this journal (Hrdý, 2018). These researches show that It is possible to identify the average indebtedness and so-called Branch standards, but only in the selected branches where the tendency of the average indebtedness is relatively stabilized and where there is a minimum volatility in the last few years.…”

“…Besides this basic hypothesis can be identified, the alternative hypothesis H 1 that "It is not possible to identify the average indebtedness and the so-called branch standards in practically none branch in selected countries". The H 0 was confirmed and H 1 was refused in the previous article of the author (Hrdý, 2018), so the question is if the same conclusion will be according to the researches in the next branches analysed in this article.…”

“…This part describes data sources, methods used, and the results of the research that would be the same as in the previous article (Hrdý, 2018). Data for this research were used from the two key sources.…”