Acta academica karviniensia 2015, 15(2):122-135 | DOI: 10.25142/aak.2015.023

IMPACT OF FIXED ASSETS SHARE AND PROFITABILITY ON USE OF DEBT SOURCES OF COMPANIES IN THE BUILDING INDUSTRY IN V4 COUNTRIES

Petra Růčková

Slezská univerzita, Obchodně podnikatelská fakulta, Univerzitní nám. 1934/3,733 40 Karviná, Email:ruckova@opf.slu.cz

The paper deals with an analysis of impact of selected factors onto the level of use of debt sources in companies in the building industry in V4 countries from 2006 to 2013. The building branch is considered an indicator of development of an economic cycle, so in the context of the current economic cycle the choice of just this industry was adequate. The aim of the paper is to perform an analysis by means of panel regression and correlation and, based on this, to find the impact of fixed assets on assets and the impact of return on equity on the use of debt sources in companies in the building industry in conditions of the V4. The choice of factors is conditioned by prior studies as well as by financial environment where these companies operate. The analysis is done at two levels. The first level monitors the relations on average values in building in individual countries. The latter value processes data by means of panel regression on a sample of building companies in the category of large to medium companies in individual countries. The results indicate whether the generally valid theories are met in the real environment of economies in Central Europe.

Keywords: building, debt capital, debt/equity ratio, equity capital, financial resources, return on equity, tangible assets, Visegrad Group (V4)

JEL classification: G32

Received: February 9, 2015; Accepted: September 23, 2015; Published: June 30, 2015  Show citation