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  • The aim of this article was to track the process of a corporate capital structure creation, and more specifically it was focused on the investment decisions as the preceding step thereof. The final corporate capital structure depends generally on a large variety of determinants, and the chosen investment decisions are formed by the firm’s individual decisions. The empirical research attempts to answer the question what the real motives and causes behind the firm's investment decisions are. The research findings are based on the questionnaire survey performed amongst companies in the Czech Republic and the subsequent data analysis. The statistical methods and procedures were used for the research evaluation. Results of the empirical questioning show that most companies monitor the debt-to-equity ratio, they rely primarily on the internal sources of financing, and they expect that their capital structure remains constant even in the near future. The inquiry also revealed that the Czech companies like to use various methods for their investment decisions, from which the payback period, and the profitability index prevail. Generally, the major respondents of the research, the medium-sized companies, have conservative attitude towards debt financing. Their decisions are in accordance with the pecking-order theory, in which firms consider their own resources (equity and profit) as primary source of financing, and they start considering the debt financing only in case of their shortage.
  • The aim of this article was to track the process of a corporate capital structure creation, and more specifically it was focused on the investment decisions as the preceding step thereof. The final corporate capital structure depends generally on a large variety of determinants, and the chosen investment decisions are formed by the firm’s individual decisions. The empirical research attempts to answer the question what the real motives and causes behind the firm's investment decisions are. The research findings are based on the questionnaire survey performed amongst companies in the Czech Republic and the subsequent data analysis. The statistical methods and procedures were used for the research evaluation. Results of the empirical questioning show that most companies monitor the debt-to-equity ratio, they rely primarily on the internal sources of financing, and they expect that their capital structure remains constant even in the near future. The inquiry also revealed that the Czech companies like to use various methods for their investment decisions, from which the payback period, and the profitability index prevail. Generally, the major respondents of the research, the medium-sized companies, have conservative attitude towards debt financing. Their decisions are in accordance with the pecking-order theory, in which firms consider their own resources (equity and profit) as primary source of financing, and they start considering the debt financing only in case of their shortage. (en)
Title
  • Corporate Investment Decisions: Empirical Evidence from the Czech Republic
  • Corporate Investment Decisions: Empirical Evidence from the Czech Republic (en)
skos:prefLabel
  • Corporate Investment Decisions: Empirical Evidence from the Czech Republic
  • Corporate Investment Decisions: Empirical Evidence from the Czech Republic (en)
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  • RIV/46747885:24310/14:00002143!RIV15-MSM-24310___
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  • 8974
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  • RIV/46747885:24310/14:00002143
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  • investment decision; corporate capital structure; debt; equity; company (en)
http://linked.open.../riv/klicoveSlovo
http://linked.open...ontrolniKodProRIV
  • [314A8D7BD8B1]
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  • Bulgaria, Albena
http://linked.open...i/riv/mistoVydani
  • Albena
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  • Proceedings of the SGEM International Conferences on Social Sciences and Arts 2014
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  • Strýčková, Lenka
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issn
  • 2367-5659
number of pages
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  • SGEM
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  • 978-619-7105-26-1
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  • 24310
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