Acta academica karviniensia 2016, 16(3):37-49 | DOI: 10.25142/aak.2016.023

IDENTIFICATION OF THE FACTORS DETERMINING CORPORATE CAPITAL STRUCTURE IN THE CZECH REPUBLIC

Lenka Strýčková
Technická univerzita v Liberci, Ekonomická fakulta, Studentská 1402/2,461 17Liberec 1, Email:lenka.stryckova@tul.cz

This study focuses on the identification of factors determining corporate capital structure in the Czech Republic, thereby contributing to an ongoing discussion on the capital structure determinants and the capital structure optimization. The paper aims to provide empirical evidence on the basis of the questionnaire survey. To identify the most significant factors affecting decisions of companies concerning their capital structure and debt policy, the statistical methods and procedures were used for the research evaluation. With the help of the factor analysis, the three key factors were derived: the financial aspects of debt financing, the debt as a tool of further development of the company, and the specifics debt and capital markets. The findings of this study moderately support conclusions of the trade-off theory, and the signalling theory. Furthermore, the survey results indicate that the firms in the Czech Republic start to perceive the capital markets as an integral part of the financial market and as a place for obtaining additional funding.

Keywords: capital structure, company, debt, determinants, equity, factors
JEL classification: G32

Received: May 25, 2016; Accepted: October 19, 2016; Published: September 30, 2016  Show citation

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Strýčková L. IDENTIFICATION OF THE FACTORS DETERMINING CORPORATE CAPITAL STRUCTURE IN THE CZECH REPUBLIC. Acta academica karviniensia. 2016;16(3):37-49. doi: 10.25142/aak.2016.023.
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