Differences between Companies by Size in Access to Financing
Differences between Companies by Size in Access to Financing

Author(s): Simona Činčalová, Jaroslav Jánský
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Approaches to financing; working capital; construction; Czech Republic
Summary/Abstract: Purpose: The aim of this paper is to examine whether approaches to financing based on selectedindicators differ from various size entities in the Czech construction industry in the differentphases of the economic cycle (during economic recession and after). Design/methodology/approach: The statistical data were drawn from two random years 2010and crisis 2014 from all construction companies listed in the Albertina database. In 2010, therewere 9583 businesses in the construction industry and 6846 businesses in 2014. From thedatabase, different indicators were used for two years in construction companies. The paperdeals with indicators working capital and total indebtedness. For all enterprises in the field ofConstruction in the two years 2010 and 2014, the basic statistical characteristics wereprocessed, and the results are based methodologically on paired t-test. Findings: Despite the economic recession, there have been no significant changes in thefunding structure of construction companies. The results of the paired t-tests have not foundany statistically significant differences for the variables Working Capital and Indebtednessthrough the different companies and in selected years (differences over time). Based on t-testsit was found that micro, small and medium enterprises have similar approaches to financing,while the large companies differ. Research/practical implications: The paper contributes to the field from the perspective ofthe Czech construction industry and it explores the differences in financing across the size ofthe companies operating in the industry. This topic clearly deserves further attention whenexamining the construction industry and its approaches to financing through other indicators orother statistical testing. Originality/value: The value of this study is to provide a first step in a detection of differentapproaches to financing in various size of Czech construction companies.

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