Acta Univ. Agric. Silvic. Mendelianae Brun. 2013, 61, 2623-2629
Published online 2013-12-24

Inter- and intra-industry variations of capital structure in the Czech manufacturing industry

Pavlína Pinková, Sylvie Riederová

Department of Business Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

The objective of the paper is to investigate the existence of inter-industry variations in the capital structure of enterprises of the Czech manufacturing industry and to identify the intra-industry causes of these differences. Three measures of capital structure are employed to determine the inter-industry variations. These are total debt ratio, long-term debt and short-term debt ratios. The set of explanatory variables is included to clarify the intra-industry variations. These explanatory variables are size, asset structure, asset utilization, profitability, non-debt tax shield and growth. The paper reports the analysis of capital structure of five distinctive industrial branches, namely the manufacture of beverages, the manufacture of textiles, the manufacture of paper and paper products, the manufacture of chemicals and chemical products, and the manufacture of computer, electronic and optical products. The data come from the financial statements of selected companies and cover a period from 2008 to 2012. The analysis of variance, correlation and regression analyses are used to develop the statistical framework. The paper aims to study the impact of industry and firm characteristics on capital structure choice.


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