Determinants of capital structure: Evidence from the czech automotive industry

Abstract

PINKOVÁ, P.: Determinants of capital structure: evidence from the Czech automotive industry. Acta univ. agric. et silvic. Mendel. Brun., 2012, LX, No. 7, pp. 217-224 The objective of the paper is to identify the determinants infl uencing the capital structure of large and medium-sized enterprises of the automotive industry in the Czech Republic. The sample consists of 100 companies belonging to NACE division 29. The data come from financial statements of selected companies and cover a period from 2006 to 2010. For the purpose of the paper quantitative research is used. The selection of appropriate dependent and independent is realized on the basis of secondary research on studies of capital structure. The analysis of variance, correlation and regression analyses have been performed to see the nature of relationship between variables. Size, tangibility, profitability and liquidity appear to be relevant determinants of capital structure. Growth is not a statistically significant determinant of leverage. It has been observed that the maturity of debt has to be considered, since the investigation of total debt only does not provide precious results. The findings do not unequivocally support either the static trade-offtheory or the pecking order theory.