Impact of Selected Determinants on Capital Structure Management in Areas of Manufacturing and Services in Companies of Visegrad Group Countries
Impact of Selected Determinants on Capital Structure Management in Areas of Manufacturing and Services in Companies of Visegrad Group Countries

Summary/Abstract: A selection of financing source is being influenced by many factors, which have impact on the entire economy of society. Attention is in article paid to the question how this selection is influenced by achieving profitability, liquidity and longterm assets. Those factors are chosen based on previously provided studies. The aim of the article is to evaluate the main aspects of theories of capital structure based on previous studies and elaborated analyses. Further aim is to find out by GMM method, to what rate the selected economic financial indicators (evaluating the main factors of business activity) influence a decision- making as it comes to the use of debt financing; those indicators are – profitability, liquidity and long- term assets the company disposes of in the V4 countries in manufacturing industry and services. Provided analysis indicated that there does not exist unified approach to the management of financial structure in particular countries and branches. Analyzed samples of companies not always created robust model, out of which conclusions could be made. The results also indicate that although in all analyzed countries debt finances primarily come from bank market, financial structure is not automatically managed based on dynamic trade off theories.

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