Capital structure vs financing rules - the Visegrad Group countries

• Autorzy: Gostkowska-Drzewicka Magdalena , Majerowska Ewa

Identyfikatory

DOI

10.29119/1641-3466.2023.169.17

• Języki publikacji: EN

Abstrakty

EN

Purpose: The purpose of this paper is to investigate whether the capital structure of stock exchange listed companies in individual countries of the Visegrad Group differs significantly, and whether these entities can be considered to be organizations implementing the principles of the golden and silver rules of accounting. Design/methodology/approach: The research hypotheses assumed were verified using appropriate statistical tools. Calculations were per-formed using the Gretl software and MS Excel. Findings: The basis for operating activity financing in the companies under examination mainly entailed equity. In practice, this means that most of the entities surveyed follow the silver, less frequently the golden (the more restrictive), rule of accounting. The results obtained for each country of the Visegrad Four differed significantly. The research conducted provides a basis for determining whether the golden and silver rules of accounting constitute factors affecting the decision-making regarding capital structure formation in companies listed in the Visegrad Group countries. The study covers companies listed in the four countries and provides a basis for further research in this area, with respect to both the sample size and the time series length. Research limitations/implications: The paper takes into account only listed companies, so its results do not explain capital structure behavior of other companies. The research is a contribution to further analyses of the capital structure, which covers all types of enterprises. Practical implications: The research conducted provides a basis for determining whether the golden and silver rules of accounting constitute factors affecting the decision-making regarding capital structure formation in companies listed in the Visegrad Group countries. The study covers companies listed in the four countries and provides a basis for further research in this area, with respect to both the sample size and the time series length. Originality/value: The most important principle of financing is that firms should try to match the characteristics of the financing as closely as possible to the characteristics of the assets being financed. Unfortunately, only a few studies on this subject can be found, especially internationally. Our research aims to fill a gap in the literature on the subject. It made possible to identify financing rules characterizing capital structure of the companies operating in different economic conditions. The study may be addressed to analysts, investors and managers of companies as well as researchers conducting research in corporate finance area.

Słowa kluczowe

EN

equity capital; golden rules of accounting; silver rules of accounting; golden rules of financing; silver rules of financing; V4

PL

kapitał własny; złote zasady rachunkowości; srebrne zasady rachunkowości; złote zasady finansowania; srebrne zasady finansowania; V4

• Wydawca: Wydawnictwo Politechniki Śląskiej
• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2023
• Tom: z. 169
• Strony: 301--318
• Opis fizyczny: Bibliogr. 36 poz.

Twórcy

autor

Gostkowska-Drzewicka Magdalena

• Department of Corporate Finance, Faculty of Management, University of Gdańsk

• https://orcid.org/0000-0002-4383-7711

autor

Majerowska Ewa

• Department of Corporate Finance, Faculty of Management, University of Gdańsk

• https://orcid.org/0000-0003-0991-3714

Bibliografia

• 1. Adamczyk, M. (2013). Presentation of Equity in the Financial Statements of Public Company. Finance. Financial Market. Insurance, Vol. 58.
• 2. Barburski, J. (2014). Shareholder’s Equity as a Basis for Safeguarding the Security of Companies’ Activities as Exemplified by Entities from the WIG20. Finance. Financial Market. Insurance, Vol. 67.
• 3. Białek-Jaworska, A., Nehrebecka, N. (2016). Preferences of Polish Enterprises as Regards Debt Financing. Ekonomista, Vol. 4.
• 4. Bień, W. (2018). Financial management of the enterprise. Warszawa: Difin.
• 5. Chetverikova, A. (2020). The Visegrad Countries in the EU: Economic Results. World Economy and International Relations, Vol. 64.
• 6. Damodaran, A. (2017). Corporate Finance. Theory and Practice. Warszawa: One Press.
• 7. Duliniec, A. (2011). Finansowanie przedsiębiorstwa. Strategie i instrumenty. Warszawa: PWN.
• 8. Fenyves, V., Peto, K., Szenderak, J., Harangi-Rakos, M. (2020). The capital structure of agricultural enterprises in the Visegrad countries, Agricultural Economics-Zemedelska Ekonomika, Vol. 66.
• 9. Figura, P. (2011). Zależności między celem nadrzędnym przedsiębiorstwa i wartościami wskaźników finansowych w przekroju sektorowym. Gdańsk: WN PG.
• 10. Figura, P. (2018). Diversity of Capital-Asset Structure Depending on the Size of an Enterprise. Business Enterprise & Finance, Vol. 1.
• 11. Gabrusewicz, W. (2014). Analiza finansowa przedsiębiorstwa. Teoria i zastosowanie. Warszawa: PWE.
• 12. Guliyev, R., Najafov, S. (2019). The Effect of Capital Structure on Firm Efficiency. Economic and Social Development. 37th International Scientific Conference on Economic and Social Development-Socio Economic Problems of Suistainable Development. Baku: Proceedings Paper.
• 13. GUS (2016). Retreived from: www.stat.gov.pl, 9.12.2016. Economic situation in industry, construction, trade, services and investments, current database, monthly data.
• 14. Janus, A. (2006). The Capital Stock the Source of Financing Activity Private Enterprises. Folia Oeconomica, Vol. 200.
• 15. Jaworski, J., Czerwonka, L. (2017). Determinants of Capital Structure of Companies Listed on the Warsaw Stock Exchange. The Service Sector. Annales H - Oeconomia, Vol. 51.
• 16. Kluzek, M., Schmidt-Jessa, K. (2022). Capital structure and taxation of companies operating within national and multinational corporate groups: evidence from the Visegrad Group of countries. Journal of Business Economics and Management, Vol. 23.
• 17. Konečný, Z. (2013). Golden Rules of Financing Related to the Life Cycle of Czech Automotive Firms. Journal of Competitiveness, Vol. 5.
• 18. Korol, T. (2013). A new approach to indicator analysis in the enterprise. Warszawa: Oficyna a Wolters Kluwer Business.
• 19. Lisińska, K. (2012). Capital Structure of Manufacturing Companies in Poland, Germany and Portugal. Research Papers of Wrocław University of Economics, Vol. 27.
• 20. Maćkowiak, E. (2009). Economic added value. Warszawa: PWE.
• 21. Marzec, J. (2010). Golden Rules for Financing in Practice Small and Medium Enterprises. Ekonomiczne problemy usług, Vol. 51.
• 22. Pederzini, E., Toniolo, A. (2020). SMEs Equity Financing: Does Corporate Law Matter? European Company Law, Vol. 17, Iss. 6.
• 23. Pomykalska, B., Pomykalski, P. (2017). Analiza finansowa przedsiębiorstwa. Warszawa: PWN.
• 24. Power, J., Power, B., Ryan, G. (2022). Determinants of equity financing: a demand side analysis of Irish indigenous technology-based firms, Irish Journal of Management, Vol. 41, Iss. 1.
• 25. Różański, J., Bogołębska, J. (2022). Capital Structure of Enterprises in the Process of Internationalization. Scientific Papers of Silesian University of Technology. Organization and Management Series, Vol. 157.
• 26. Sierpińska, M. (2021). Determinants of mining companies’ capital structure. Mineral Resources Management, Vol. 37, Iss. 2.
• 27. Sierpińska, M., Jachna, T. (2012) Ocena przedsiębiorstwa według standardów światowych. Warszawa: PWN.
• 28. Skowronek-Mielczarek, A., Leszczyński, Z. (2008). Analiza działalności i rozwoju przedsiębiorstwa. Warszawa: PWE.
• 29. Szczepaniak, P. (2014). Equity in non-financial sectors in Poland over the years 2009-2011. Financial Sciences, Vol. 20.
• 30. Walsh, C. (2008). Key Management Ratios. Glasgow: Prentice Hall.
• 31. Wieczorek-Kosmala, M., Błach, J., Gorzen-Mitka, J. (2021). Does Capital Structure Drive Profitability in the Energy Sector? Energies, Vol. 14, https://doi.org/10.3390/en14164803.
• 32. Wieczorek-Kosmala, M., Błach, J., Trzesiok, J. (2020). Comparative Study of the Relevance of Equity Financing in European SMES. Journal of Business Economics and Management, Vol. 21, Iss. 6.
• 33. Wrońska-Bukalska, E. (2014). Does Industry Nature Shape the Level and Structure of Equity? Annales Universitatis Mariae Curie-Skłodowska. Sectio H, Vol. 48, Iss. 3.
• 34. Wypych, M. (2012). Structure of Assets and the Golden Financing Rules (on the Example of the Stock Listed Exchange Companies). Research Papers of Wrocław University of Economics, Vol. 261.
• 35. Yasar, B. (2021). The New Investment Landscape: Equity Crowdfunding. Central Bank Review, Vol. 21, Iss. 1.
• 36. Zhang, L., Zhang, S., Guo, Y.Y. (2019). The effects of equity financing and debt financing on technological innovation Evidence from developed countries, Baltic Journal of Management, Vol. 14, Iss. 4.

Uwagi

Opracowanie rekordu ze środków MNiSW, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2024).