Capital Structure of Listed Companies in Visegrad Countries

Bauer, Patrik

doi:10.18267/j.pep.237

Cited by 25 publications

(35 citation statements)

References 36 publications

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“…This proposition agrees with trade off theory. The positive relation between company's size and capital structure has been supported by the evidence of SMEs (Michaelas et al, 1999; Bhiard mac an and Lucey, 2010) and large companies (Ozkan, 2001) and in general (Korajczyk and Levy, 2003;Bauer, 2004;Hanousek and Shamshur, 2011;Nguyen and Wu, 2011;Lim, 2012). However, larger companies have more opportunities to achieve greater sales and consequently retain earnings.…”

Section: Theoretical Backgroundmentioning

confidence: 92%

“…Thus, according trade off theory growth reduces leverage. Some studies supported proposition that there is a negative and signifi cant relation between growth opportunities and capital structure (Ozkan, 2001;Bauer, 2004;Daskalakis and Psillaki, 2008).…”

Section: Theoretical Backgroundmentioning

confidence: 92%

“…Consequently, companies have opportunity to reduce the amount of debt and in turn decrease the fi nancial leverage. Thus, according pecking order theory the relation between profi tability and capital structure should be negative (Barton and Gordon, 1988;Jordan et al, 1998;Michaelas et al, 1999;Ozkan, 2001;Bauer, 2004;Daskalakis and Psillaki, 2008;Bastos et al, 2009;Bokpin, 2009;Dincergok and Yalciner, 2011;Nguyen and Wu, 2011;Keshtkar et al, 2012).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Following authors as Ozkan, 2001;Bauer, 2004;Daskalakis and Psillaki, 2008;Bastos et al, 2009;Hanousek and Shamshur, 2011;Nguyen and Wu, 2011;Kouki and Said, 2012;Lim, 2012 etc. we use EBIT to Total Assets as a proxy for company's profi tability. We expect that relation between profi tability and capital structure will be negative for selected companies.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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The determinants of capital structure: the evidence from the European Union

Mokhova¹,

Zinecker²

2013

Acta Univ. Agric. Silvic. Mendelianae Brun.

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MOKHOVA NATALIA, ZINECKER MAREK: The determinants of capital structure: the evidence from the European Union. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2013, LXI, No. 7, pp. 2533-2546 The aim of this study is to indicate the infl uence of several internal determinants on capital structure in diff erent European countries and retrace its tendency taking into consideration the membership of the European Union. Nowadays there are a lot of debates according the future of the European Union. The recent global fi nancial crisis and the following European debt crisis show the signifi cance of the country fi nancial stability and its impact on the private sector. The paper investigates 32 countries of European Union dividing them into three groups as (1) old EU members (15 countries), (2) new EU members (12 countries) and (3) EU candidates (4 candidate countries and 1 acceding country). The managers make their fi nancial decisions according to the source of fi nancing and capital structure based on the macroeconomic conditions and country specifi cs and obviously on company's advantages and disadvantages, i.e. its internal characteristics. Based on the analysis of previous studies we have chosen several signifi cant internal determinants of capital structure as profi tability, tangibility, growth opportunities, non-debt tax shields and fi rm's size. The fi ndings show that the country's specifi cs, EU membership and corporate debt structure infl uence the relation between capital structure and its internal characteristics. The capital structure in all countries has tendency to increase, furthermore the old members rely more on debt then candidates or new members. There is no doubt that the majority of countries support Pecking Order Theory then Trade off Theory regarding investigated relations. In most countries the profi tability and size have negative and signifi cant infl uence on corporate capital structure. At the same time tangibility, growth opportunities and non-debt tax shields split up: selected countries experience positive impact, another part negative, supporting diff erent theories. capital structure, fi nancial performance, European Union, determinantsThere are a lot of discussions nowadays concerning the future of European Union (EU): should it stand against the following economic shocks and be treated from fi nancial contagion on macro level or separately? However, some countries are still willing to be part of EU. First of all, the main reason is expected economic growth due to the increased foreign investments from EU members. Another reason concerns the fi nancial aids for economic development in the case of crisis. The migration issue has been taken into consideration as well, as it will infl uence the employment rate and standards of living. Nevertheless, in order to be a true member of EU, the members and candidates have to meet so called convergence criteria (Maastricht criteria), which regulate the fi nancial stability of a country. The countries are contro...

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Section: Theoretical Backgroundmentioning

confidence: 92%

Section: Theoretical Backgroundmentioning

confidence: 92%

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

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The determinants of capital structure: the evidence from the European Union

Mokhova¹,

Zinecker²

2013

Acta Univ. Agric. Silvic. Mendelianae Brun.

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“…interest tax shield) and disadvantages (i.e. cost of financial distress) of debt finance (Bauer, 2004). While leverage rises, the marginal tax shield from each currency unit of extra debt plunges.…”

Section: The Trade-off Theorymentioning

confidence: 99%

Determinants of Capital Structure: The Evidence from European Energy Companies

Berkman¹,

İskenderoğlu²,

Karadeniz³

et al. 2016

IJBA

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The main aims of this study are to determine the factors which affect capital structure of corporations operating in energy sector and to detect capital structure theories with which capital structure of energy sector companies would comply. In this context, a panel data analysis was performed on totally 79 European energy companies operated between the years 2009 -2012. According to results of the study; diminishing leverage rate caused by increased liquidity in European energy companies can be explained with the Pecking Order Theory, while escalating leverage rate caused by increased tangible fixed assets or equity turnover would be defined with the Trade-off Theory.

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