Work detail

Inter-industry Differences in Capital Structure

Author: Mgr. Lukáš Egrt
Year: 2004 - summer
Leaders: Ing. Irena Jindřichovská CSc.
Work type: Finance and Banking
Language: English
Pages: 77
Awards and prizes:
Abstract: The purpose of this paper is to empirically analyse the inter-industry differences of capital structure. The research is performed on the sample of publicly traded firms from the central European countries (Czech republic, Hungary, Poland, Slovakia). Using ordinary least square (OLS) method of estimate and one way analysis of variance (ANOVA) we have obtained following results: Industry class constitutes another significant determinant of leverage (beside factors like size, profitability, etc.). The value of explanatory R2 increased by more than 9% when model included industry dummy.
The obtained results of relative leverage were compared to the similar studies and with the only exception (food industry) we can conclude that the industries in the central Europe are relatively leveraged just as American and Japanese companies.
Downloadable: Diploma Thesis - Egrt




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