Pregled bibliografske jedinice broj: 816936
How does capital structure affect on profitability of SME'S
How does capital structure affect on profitability of SME'S // Zbornik radova 3. međunarodnog znanstvenog simpozija “Gospodarstvo istočne Hrvatske – vizija i razvoj” / Mašek, Anka (ur.).
Osijek: Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2014. str. 291-300 (predavanje, međunarodna recenzija, cjeloviti rad (in extenso), znanstveni)
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Naslov
How does capital structure affect on profitability of SME'S
Autori
Harc, Martina
Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni
Izvornik
Zbornik radova 3. međunarodnog znanstvenog simpozija “Gospodarstvo istočne Hrvatske – vizija i razvoj”
/ Mašek, Anka - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2014, 291-300
Skup
Gospodarstvo istočne Hrvatske – vizija i razvoj
Mjesto i datum
Osijek, Hrvatska, 22.05.2014. - 24.05.2014
Vrsta sudjelovanja
Predavanje
Vrsta recenzije
Međunarodna recenzija
Ključne riječi
capital structure; profitability; leverage; small and medium-sized enterprises
Sažetak
This paper aims to determine how does profitability affects capital structure of Croatian small and medium size companies. Most of previous studies have shown an inverse relationship between profitability and leverage, but also the positive correlation is claimed by some authors.. A survey has been conducted on a sample of 500 Croatian small and medium size companies for the period 2005. to 2010. The data used for the empirical analysis were derived from companies' annual reports. Pearson correlation coefficient is applied in order to examine the relationship between profitability and leverage measures. The results of this research indicate negative relationship between profitability and leverage. But, profitability differently affect short-term and long-term leverage. The relationship between profitability and short-term leverage is negative and statistically significant in all observed years. The relationship between profitability and long-term leverage is not negative in all observed years and is not statistically significant. These results suggests that Croatian SME's use profits to reduce their debt level or becoming less levered when they are profitable. This finding is consistent with the packing order theory which argues that firms prefer internal financing from external.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
