Finanse, Rynki Finansowe, Ubezpieczenia

Previously: Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia


ISSN: 2450-7741     eISSN: 2300-4460    OAI    DOI: 10.18276/frfu.2017.89/2-05
CC BY-SA   Open Access 

Issue archive / 5/2017
Wpływ wolnej pojemności zadłużeniowej na inwestycje spółek publicznych Europy środkowo-wschodniej w latach 2007–2014
(SPARE DEBT CAPACITY AND INVESTMENT ABILITY IN PUBLIC COMPANIES OF CENTRAL – EASTERN EUROPE)

Authors: Józefa Monika Gryko
Keywords: financial flexibility spare debt capacity investment ability public companies
Data publikacji całości:2017
Page range:14 (65-78)
Cited-by (Crossref) ?:

Abstract

Purpose – The article focuses on connection between using spare debt capacity and investment abilities of public companies of CCE. Design/methodology/approach – The study was conducted on a sample of 564 stock companies of the industrial sector from 10 countries of Central and Eastern Europe. The study covered the period 2007–2014. The research was conducted using tests that verify the statistical significance of differences in investments in the enterprise groups with different levels of using spared debt capacity. Findings – A s a result of the research, it was found that companies that creates their financial flexibility are smaller and more profitable than both firms with low level of debt in all analysed period and firms with no spare debt capacity. After having a relatively low level of debt, these companies invest. The short-term increase in investment observed in this group is statistically significant. However, in the short term, the negative impact of these investments on the profitability of the company was observed. Originality/value – This article presents the results of original empirical research conducted on a sample of companies not covered by such a study. It documents that the policy directed at creating financial flexibility can influence the level of investment.
Download file

Article file

Bibliography

1.Bancel, F., Mittoo, U.R. (2004). Cross-Country Determinants of Capital Structure Choice: A Survey of European Firms. Financial Management, 33.
2.Brounen, D., de Jong, A., Koedijk, K. (2006). Capital structure policies in Europe: Survey evidence. Journal of Banking and Finance, 5 (30), 1409–1442.
3.Frank, M.Z., Goyal, V. (2009). Capital structure decisions: which factors are reliably important? Financial Management, Spring.
4.Graham, J.R., Harvey, C.R. (2001). The theory and practice of corporate finance: evidence from the field. Journal of Financial Economics, 60.
5.Harris, M., Raviv, A. (1991). The Theory of Capital Structure. The Journal of Finance, 1 (46), 297–355.
6.Marchica, M.T., Mura, R., (2010). Financial flexibility, investment ability, and firm value: evidence from firms with spare debt capacity. Financial Management, 39.
7.Minton, B.A., Wruck, K.H. (2001). Financial Conservatism: Evidence on Capital Structure from Low Leverage Firms, AFA 2002 Atlanta; Dice Ctr. Working Paper No. 2001-6. Pobrano z: https://ssrn.com/abstract=269608.
8.Myers, S.C., Majluf, N.S. (1984). Corporate financing and investment decisions when\firms have information that investors do not have. Journal of Financial Economics, 13.
9.Powers, E., Tsyplakov, S. (2008). What Is the Cost of Financial Flexibility? Theory and Evidence for Make-Whole Call Provisions. Financial Management, 37.
10.Rajan, R.G., Zingales, L. (1995). What do we know about capital structure? Some evidence from international data. Journal of Finance, 50.
11.Scherr, F.C., Hulburt, H.M. (2001). The Debt Maturity Structure of Small Firms. Financial Management, 30, 85–111.
12.Słoński, T. (2012). Analiza wpływu wspomaganego długiem wykupu akcji (LBO) na wartość spółki. Wrocław: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu.