Acta Univ. Agric. Silvic. Mendelianae Brun. 2014, 62(2), 363-372 | DOI: 10.11118/actaun201462020363

Capital Structure in Start-up Firms in the Conditions of the Czech Economy

Gabriela Chmelíková1, Kristina Somerlíková2
1 Department of Regional and Business Economics, Faculty of Regional Development and International Studies, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic
2 Department of Demography and Applied Statistics, Faculty of Regional Development and International Studies, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

The aim of this article is to characterise the form of capital structures in start-up companies in the Czech economy and to identify what determines them. The choice of theme for this research was motivated by the important role that start-up companies have played in the development of economies especially in its contribution to employment, while having a low empirical understanding of the structure of capital resources of the firms. In this contribution, we have managed to identify the average form of the capital structures of start-up companies in the Czech economy. Moreover, they were in keeping with the Trade-Off Theory of Capital Structure testing the factors determining the composition of the capital resources of the firms. However it was only possible to empirically support the conclusions in part.

Keywords: start-up firms, employment, capital structure, trade-off theory, determinants of capital structure
Grants and funding:

This paper has arisen in the framework of the project: GA ČR (Czech Science Foundation) No. P403/12/P731 "Ohodnocování Dot-Com firem".

Prepublished online: May 23, 2014; Published: February 1, 2014  Show citation

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Chmelíková, G., & Somerlíková, K. (2014). Capital Structure in Start-up Firms in the Conditions of the Czech Economy. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 62(2), 363-372. doi: 10.11118/actaun201462020363
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