Informative value of firm capital structure

Bauer, Patrik; Bubák, Vít

doi:10.18267/j.pep.216

Cited by 3 publications

(4 citation statements)

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“…To author's best knowledge, no study has been published focusing on empirical testing of capital structure theories in Visegrad countries, except for Bauer and Bubák (2003). They test for existence of optimal capital structure and for relevance of signalling theory in the case of Czech listed firms.…”

Section: )mentioning

confidence: 99%

“…Concerning Visegrad countries, i.e., the Czech Republic, Hungary, Poland, and the Slovak Republic, Krauseová (1995) describes the capital structure of Czech firms in the period from 1990 to 1993. Bauer and Bubák (2003) test for existence of optimal capital structure and for relevance of signalling theory. Bauer (2004) focuses on determinants of capital structure.…”

Section: Introductionmentioning

confidence: 99%

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Capital Structure of Listed Companies in Visegrad Countries

Bauer¹

2004

Prague Economic Papers

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Abstract:This paper analyzes capital structure of listed companies in Visegrad countries during the period from 2000 to 2001. The results are based on the database, which assembles financial reports of listed firms. In general, leverage of these firms is relatively low if measured in book value, but it is relatively high if assessed in market value. Quasi-maximum likelihood estimation is used in order to investigate the determinants of capital structure. According to the results, leverage of a company is positively correlated with size and it is negatively correlated with profitability, tangibility and non-debt tax shields. There is a negative relationship between leverage measured in market value and growth opportunities. Moreover, leverage decreases with volatility, albeit on a lower level of statistical significance.

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Section: )mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Capital Structure of Listed Companies in Visegrad Countries

Bauer¹

2004

Prague Economic Papers

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“…Thus, an optimal capital structure will be determined and later on new capital will be raised by value-maximizing companies in such a way that the actual capital structure will be kept on target over time (Bauer and Bubá k, 2003).…”

Section: Introductionmentioning

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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“…That approach was not used in this article, but in terms of its objective, it cannot be considered as an error that would somehow affect the results achieved. According to Bauer and Bubák [56], it is very important to know the capital structure of companies, since it has a fundamental effect on their value in the eyes of investors. The previously mentioned authors tested the compliance of the theory of optimal capital structure of companies with the potential growth of their value for investors.…”

Section: Discussionmentioning

confidence: 99%

The Ideal Debt Ratio of an Agricultural Enterprise

2021

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The objective of the contribution is to propose a new methodology for determining the optimal credit absorption capacity of an enterprise while maintaining the positive function of financial leverage, i.e., the maximum possible loan that would continuously bring benefit to the enterprise. The proposed methodology determines the credit absorption capacity of an enterprise according to EVA Equity and EVA Entity. Based on a theoretical analysis of both indicators, the possibility of applying the proposed methodology for this purpose was proved. To verify the theoretical assumptions, the optimal credit absorption capacity of enterprises operating in the agricultural sector of the CR was determined. The data used for the purposes of the contribution were obtained from the Albertina database for the years 2012–2018. The credit absorption capacity of the monitored enterprises ranged from CZK 6.88 million to CZK 9.6 million. The article also determines the optimal ratio of equity to debt capital.

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Informative value of firm capital structure

Cited by 3 publications

References 26 publications

Capital Structure of Listed Companies in Visegrad Countries

Capital Structure of Listed Companies in Visegrad Countries

Determinants of Capital Structure: The Evidence from European Energy Companies

The Ideal Debt Ratio of an Agricultural Enterprise

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