Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65, 1729-1739
Published online 2017-10-31

Comparative Analysis of Debt Financing Models in Czech and Ukrainian Agriculture

Olena Oliynyk‑Dunn1, Viktor Adamenko2, Pavel Žufan3

1Department of Banking, Faculty of Economics, National University of Life and Environmental Sciences of Ukraine, Heroyiv Oborony str., 11, Kyiv, 03041, Ukraine
2Department of Economics and Business Finance, Faculty of Economics, Management and Psychology, Kyiv National University of Trade and Economics, Kyoto str., 19, Kyiv, 02156, Ukraine
3Department of Management, Faculty of Business and Economics, Mendel University in Brno, Zemedelska 1, 613 00 Brno, Czech Republic

The paper defines the essence of financing models (financing patterns) from the viewpoint of different scientific approaches. Using the operational viewpoint it then analyses the use of different financing model by large and medium‑sized agricultural enterprises of Ukraine and the Czech Republic. Based on this analysis, there are identified the basic financing models in Czech and Ukrainian agriculture. The changes that occurred in the role of the debt financing model for enterprises in the sector in both countries are determined. The role of debt financing model for agricultural enterprises in Ukraine, in contrast to the Czech Republic, significantly increased in recent years. The causes of this phenomenon are associated with the deterioration of the development of the financial system in the country, which also projects into worsening conditions for self‑financing. It is the sign of a systemic crisis in agriculture. But in the Czech Republic the role of equity financing model of agricultural enterprises increased on the background of improving conditions for self‑financing and, consequently, increasing their independence from creditors. The volume of liabilities is distributed between the agricultural enterprises very unevenly (especially in Ukraine), and it reflects not only the existing differentiation of size of these enterprises, but different access to external funds in general. The results of the paper deny the findings of some researchers that in countries with a less developed economy and financial system, the role of debt financing model is lower due to a lack access to the loans.


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