The capital structure of agricultural enterprises in the Visegrad countries

Fenyves, Veronika; Pető, Károly; Szenderák, János; Harangi–Rákos, Mónika

doi:10.17221/285/2019-agricecon

Cited by 19 publications

(13 citation statements)

References 15 publications

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“…Byer and Hinke [15] described the resulting differences in profitability broken down using the additive decomposition method, which addresses the quantified impact of several influencing factors. More profitable companies were less dependent on debt financing, while fast-growing companies had limited access to the financial market, said Fenyves et al [16]. Keishinick and Moussawi [17] interpret their evidence by suggesting that, over time, managers allow their risk preferences to dominate their firm decisions about capital structure when protected from being disciplined.…”

Section: Literature Researchmentioning

confidence: 99%

Optimization of the capital structure of an agricultural company in the Czech Republic

2022

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The topic of optimizing capital structure is very important for a company to work efficiently and reliably. It is important for every company to optimize everything so that they have the highest possible efficiency. Entrepreneurs also try to make this optimization last them as long as possible. Therefore, the aim of this paper is to determine the optimal capital structure of an agricultural company operating in the Czech Republic. The base source of data is the closing data of individual agricultural companies from the Albertina database of Bisnode. More than 9,000 agricultural enterprises operating in the given sector of the national economy in the Czech Republic are recorded in this data set. The calculation of the WACC method and the level of debt of individual agricultural companies are used. Subsequently, the equation for calculating the cost of capital is determined using power regression. Here we also obtain the value of reliability, which in this particular case is not ideal, but still reasonable. A line chart is used to determine the optimal interval for the agricultural company. The optimal debt interval comes out to 20 to 25%, at which the cost of capital is declared to be from 22 to 24%. If agricultural companies had higher or lower debt ratios, it would be inefficient for the enterprise.

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Section: Literature Researchmentioning

confidence: 99%

Optimization of the capital structure of an agricultural company in the Czech Republic

2022

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“…As a result, due to the fierce competition in the market, which is reinforced by the effects of the COVID-19 pandemic, the trend of acquisitions is expected to further intensify. As also described by Fenyves et al (2020), industry players are less likely to finance their operations with creditors, which means that the financial risk is borne only by producers who are already operating at a loss.…”

Section: Impact Of Profitability On Financial Investments In the Pharmaceutical Industrymentioning

confidence: 99%

The Effect of Financial Risk Taking on Profitability in the Pharmaceutical Industry

2021

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The significance of the pharmaceutical and commercial sectors in the national economy has noticeably intensified, as a result of the COVID-19 pandemic. The main objective of this study was to gain a better insight into the main management characteristics of the actors in the sector. It was assumed that more efficient management of financial investments (acquisitions, loans) caused higher risk financial investment decisions in the pharmaceutical industry in order to place companies in a better position in view of equity investors, illustrated best as the profitability of equity (ROE). This paper examined one possible means of covering the extremely high indirect costs (R&D, marketing) of pharmaceutical companies, also justified by the restructuring of the industry and the effect of investments in long term financial instruments on the ROE of the same business entities. Built on the EMIS database, the analysis only used the indicators of those companies operating in the pharmaceutical industry in Visegrad countries for 2019. The authors sought to draw conclusions about possible management characteristics of the entire pharmaceutical sector of these countries using cluster analysis and linear regression. The initial assumption, or main hypothesis of the study, was that in one of the countries studied or for those businesses operating above a certain revenue category, the impact of a company’s risk-taking (which can also be expressed in terms of asset-based financial income) on profitability, may appear or intensify. The performed studies did not show a strong correlation between the explanatory and profit variables either at the national level or at the level of groups formed by regional market position. In other words, the extremely high level of indirect costs were mostly covered by sales of successful cash products, and companies not indebted to suppliers undertook significant risks in the field of financial investments, thereby offsetting the positive impact of the latter on earnings.

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“…Az Európai Unió, mint gazdasági és politikai egység, jelenleg 27 tagállam szövetsége, a világgazdaság megkerülhetetlen jelentőségű szereplője. Az Európai Unió működésének vizsgálata szempontjából kiemelt jelentőséggel bír az egyes országcsoportok működésének, gazdasági helyzetének elemzése (Vasa, 2011;Fenyves et al 2019;Fenyves et al 2020). A gazdasági növekedés és annak üteme a nemzetgazdasági ágazatok teljesítményétől és hatékonyságától függ (Ionescu et al, 2019).…”

Section: Bevezetésunclassified

Románia mezőgazdaságának vizsgálata, különös tekintettel az EU-csatlakozás utáni időszakra

Nagy

2021

Acta Carolus Robertus

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A mezőgazdaság létfontosságú tevékenység, amelynek meghatározó szerepe van a lakosság élelmezésbiztonságában, hatást gyakorol a regionális és helyi ökoszisztémákra és minden ország gazdasági fejlődésének egyik eszköze. Tény, hogy a mezőgazdaság nemzetgazdasági jelentősége a legtöbb országban csökkent az elmúlt időszakban, azonban ma sem kerülhető meg az agrárium nemzetgazdasági szerepe Romániában és más országok esetében sem.A jelenlegi tanulmány célja, hogy megvizsgálja, bemutassa a romániai mezőgazdaság helyzetét, átalakulását az elmúlt években, különös tekintettel az uniós csatlakozás utáni évekre. Cél volt továbbá egy olyan végkövetkeztetés levonása, amely tartalmazza a legfontosabb múltbeli tendenciákat, a román mezőgazdaság sajátosságait és egy jövőbeli perspektívát is megfogalmaz az aktuális, globális mezőgazdasági kihívások, problémák fényében. A cél elérése érdekében olyan makrogazdasági mutatók használatára került sor, mint a GDP, a GO, a földhasználat, a mezőgazdasági ágazatok vizsgálata (növénytermesztés, állattenyésztés) és a mezőgazdasági output.

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The capital structure of agricultural enterprises in the Visegrad countries

Cited by 19 publications

References 15 publications

Optimization of the capital structure of an agricultural company in the Czech Republic

Optimization of the capital structure of an agricultural company in the Czech Republic

The Effect of Financial Risk Taking on Profitability in the Pharmaceutical Industry

Románia mezőgazdaságának vizsgálata, különös tekintettel az EU-csatlakozás utáni időszakra

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