Impact of Fixed Assets Share and Profitability on Use of Debt Sources of Companies in the Building Industry in V4 Countries

Abstract

Abstrakt: The paper deals with an analysis of impact of selected factors onto the level of use of debt sources in companies in the building industry in V4 countries from 2006 to 2013. The building branch is considered an indicator of development of an economic cycle, so in the context of the current economic cycle the choice of just this industry was adequate. The aim of the paper is to perform an analysis by means of panel regression and correlation and, based on this, to find the impact of fixed assets on assets and the impact of return on equity on the use of debt sources in companies in the building industry in conditions of the V4. The choice of factors is conditioned by prior studies as well as by financial environment where these companies operate. The analysis is done at two levels. The first level monitors the relations on average values in building in individual countries. The latter value processes data by means of panel regression on a sample of building companies in the category of large to medium companies in individual countries. The results indicate whether the generally valid theories are met in the real environment of economies in Central Europe. ÚvodPodniky v různých odvětvích a v různých fázích životního cyklu podniku využívají odlišným způsobem zdroje financování. Rozhodování může být ovlivněno mnoha faktory, nicméně firma má možnost disponovat pouze vlastními nebo cizími zdroji financování, zdroji interními a externími. Rozhodování o tom, který ze zdrojů financování bude použit, vyplývá z nastavení vnitřní finanční politiky podniku a z vnějších aspektů, které mohou dostupnost příslušných zdrojů ovlivnit. Cílem článku je na základě analýzy pomocí panelové regrese a korelace zjistit vliv podílu dlouhodobého majetku a rentability vlastního kapitálu na využití cizích zdrojů financování ve firmách v odvětví stavebnictví v podmínkách Visegradské čtyřky. Výběr faktorů je postaven na níže uvedených studiích.

Impact of selected determinants on the financial structure of the mining companies in the selected countries

“…This assumption was fulfilled for Slovenia for all forms of debt as Črnigoj and Mramor (2009), Bulgaria for total debt as Mokhova and Zinecker (2013), Poland for long-term and short-term debt as Nivorozhkin (2005), Delcoure (2007), Mokhova and Zinecker (2013), Růčková (2015bRůčková ( , 2017 and Austria for short-term debt as Cheng and Shiu (2007), Kayo and Kimura (2011). On the other hand, Hungarian and Canadian companies showed a positive link to total and short-term debt as Růčková (2015aRůčková ( , 2015bRůčková ( , 2017. The largest coefficient, -12.23, can be seen for Slovenia for total debt.…”

“…In the countries of the extended Visegrád Group, the results are thus not clearly in favour of negative links. A number of studies have also revealed a positive linke.g., Klapper et al (2002), Pinková (2012), Aulová and Hlavsa (2013), Mokhova and Zinecker (2013) and Růčková (2015aRůčková ( , 2015bRůčková ( , 2017.…”

“…Even though it is clear from what has been said so far, what link, in which case, there are several pitfalls that change expected linksthe orientation of the country's financial system (collateral is typically used in bankingoriented systems), the sector that we will focus on (stocks cannot be used as collateral), size of the company (micro and small not have a significant amount of tangible assets) and dividing debt into short-term and long-term (tangible assets are usually used as collateral in long-term lending). This relationship was examined, for example, in these studies - Michaelas et al (1999), Klapper et al (2002), Weill (2004), Bokpin (2009), Aulová and Hlavsa (2013), Mokhova and Zinecker (2013), Onofrei et al (2015), Růčková (2015a).…”

What determines leverage in selected countries of Central and Eastern Europe in the automotive industry

“…Acedo Ramirez and Ruiz Cabestre (2014) and Antoniou, Guney, and Paudyal (2002) showed a positive impact only in bank-oriented countries. Furthermore, it depends on the industry as in some sectors, companies handle a huge amount of inventories due to which collateral cannot be achieved, as reported by Aulova and Hlavsa (2013) and (Ruckova, 2015b). Klapper et al (2002), Lourenco and Oliveira (2017), Michaelas et al (1999), Onofrei, Tudose, Durdureanu, andAnton (2015) analyzed another problem namely the size of the company as micro and small companies have less tangible assets than large companies.…”

“…In their studies, authors such as Hanousek and Shamshur (2011), Hernádi and Ormos (2010), Hernádi and Ormos (2012), Jõeveer (2013), Klapper, Sarria-Allende, and Sulla (2002), Mateev, Poutziouris, and Ivanov (2013)) examined the CEE countries in one common panel, from which country conclusions cannot be drawn. On the other hand, e.g., De Haas and Peeters (2006), Delcoure (2007), Mokhova and Zinecker (2013), Nivorozhkin (2005), Ruckova (2015b), Ruckova (2015a), Ruckova (2017), Weill (2004) have devoted their work to several individual countries in this area, which have brought far more relevant results. Unfortunately, there is a lack of such studies.…”