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

Summary/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.

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