RT Journal Article
SR Electronic
A1 Landa, Martin
A1 Martinovičová, Dana
T1 Approaches to evaluation of changes in capital structure in industrial branches
JF Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
YR 2014
VO 58
IS 6
SP 259
OP 268
DO 10.11118/actaun201058060259
UL https://acta.mendelu.cz/artkey/acu-201006-0026.php
AB Capital structure is described as a relation between equity and debts while the mutual consequences among items of company's assets and resources employed as well as the cost of capital are also taken into account. Both, the theory and practice, at evaluation of approaches to capital structure are focused on creation and optimization of capital structure. Relatively less frequent approach is the analysis of a state and of changes in capital structure on the level of whole business branch. But on this basis, it is possible to investigate some "average" approaches to selection of financial resources. At capital structure optimization (the proportion between equity and debts), a wide range of criteria plays a substantial role, e.g. cost of capital, risk, expected profitability, liquidity, dividend policy. These criteria have joint effect. This way, a logic question which criteria are preferred more and which criteria are preferred less appears. The article deals with the analysis of capital structure of three branches of manufacturing industry (the branch of production of plastics, the branch of production of electric equipments, the branch of production of textile) in the years 2007-2009 with the special focus on development of financial structure, capital structure and on cost of capital.