Naslov
Distinctive features of companies with optimal capital structure

Autori
Bubić, Jasenka ; Šušak, Toni

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
16th International Scientific Conference on Economic and Social Development – “The Legal Challenges of Modern World” / Primorac, Zeljka ; Bussoli, Candida ; Recker, Nicholas - Split, 2016, 834-843

Skup
16th International Scientific Conference on Economic and Social Development – “The Legal Challenges of Modern World”

Mjesto i datum
Split, Hrvatska, 01.09.2016. - 02.09.2016

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Recenziran

Ključne riječi
bankruptcy ; determinants ; optimal capital structure ; SME

Sažetak
Capital structure, due to its significant impact on the vitally important business activities, is often subject of economic researches. One of the most important areas which affects the daily operations of a company includes effects that capital structure can have on tax liability of a company. It is because of the differences in the tax treatment of fundamental capital structure categories as well as the creditor's perception of a company which is the groundwork for making a decision whether to approve funds allocation necessary to finance business activities. That is the reason why it is important to determine the appropriate ratio of own and borrowed funds, which is often characterised by tendency of finding optimal value that is not always easy to identify because it can be done in different ways. As the basis for determining the optimal value, dichotomous business continuity variable is used because profitability is not necessarily a reliable indicator of real value and stability of a company. Furthermore, the next question that arises is - what distinguishes companies which do not have an optimal capital structure from those companies that have an optimal capital structure? The aim of this research is to, by applying statistical methodology, determine which financial ratios represent key distinctive characteristics of the two groups of companies. Sample is comprised of small and medium enterprises based in Republic of Croatia. They are divided in two subsamples – first subsample includes companies which have had optimal capital structure and second subsample includes companies which haven't had optimal capital structure. Financial data was gathered from Croatian Financial Agency official website.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA