Comparative Analysis of Financing Sources in Domestic and Foreign Enterprises in Poland
Comparative Analysis of Financing Sources in Domestic and Foreign Enterprises in Poland

Author(s): Jerzy Różański
Subject(s): Business Economy / Management, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: financing sources; domestic and foreign enterprises; parent company; daughter company; criteria for financing sources;
Summary/Abstract: Scope of activity of domestic enterprises and foreign enterprises is different. The foreign enterprises act in more than only one country and that is why they have specific capital structure and specific sources of financing. It confirms polish and international literature. The aim of this article is to compare sources of financing in domestic and foreign small and medium enterprises in Poland. The point is whether the differences between the structure of the financing sources of enterprises operating on an international scale and enterprises operating only within the borders of one country give the first group of enterprises a competitive advantage over the latter. The research was conducted in years 2008-2017 in 300 branches of international enterprises in Poland and in 300 domestic enterprises, using documents prepared by enterprises and questionnaire of inquiry. The research procedure was as follows. After a random selection of enterprises (stratified random sampling with division into small and medium enterprises) and collecting basic data on the selected enterprises from the register of enterprises, a specialized unit dealing with interviews and surveys of enterprises was engaged. Next, employees of this unit met with the managers appointed by the management board of the selected companies and helped them to complete the questionnaire prepared by the author in each company's headquarters. This resulted in 100% of responses in the selected companies that were representatives of the larger group. The empirical findings suggest the differences between sources of financing. The average, in this period, foreign enterprises used mainly two basic sources of financing bank credit and funds created by mother enterprise. They took into account financing by retained profit and venture-capital funds.

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