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A More Detailed Analysis of Branch Standards in Terms of Debt Distribution and Target Capital Structure
[Podrobnější analýza oborových standardů z hlediska rozložení zadlužení a cílová kapitálová struktura]

Author

Listed:
  • Milan Hrdý

Abstract

The aim of this paper was to examine how the average debt, and thus the branch standard, is actually created. A simple hypothesis was expressed that a more significant cluster of enterprises with a certain narrower range of debt, preferably close to the average debt and branch standard, would be found only in some fields, certainly not in all. The hypothesis has not been confirmed. Not in any of the fields of Iron Production, Shoe Production, Machine Production, Motor Vehicles, Beverages Production, Electrical Equipment, Air Transport, Pharmacy, it was not possible to identify a significant group of enterprises that would be around the average debt and thus the branch standard. This average indebtedness, and thus also the branch standard, is in virtually all cases made up of the average debt of all companies in the sample, with the largest groups of enterprises occurring in the area with the highest and lowest debt, respectively.

Suggested Citation

  • Milan Hrdý, 2023. "A More Detailed Analysis of Branch Standards in Terms of Debt Distribution and Target Capital Structure [Podrobnější analýza oborových standardů z hlediska rozložení zadlužení a cílová kapitálová s," Oceňování, Prague University of Economics and Business, vol. 16(1-2), pages 27-39.
    • Handle: RePEc:prg:jnloce:v:16:y:2023:i:1-2:id:288:p:27-39
    DOI: 10.18267/j.ocenovani.288
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    References listed on IDEAS

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    1. Murray Z. Frank & Vidhan K. Goyal, 2009. "Capital Structure Decisions: Which Factors Are Reliably Important?," Financial Management, Financial Management Association International, vol. 38(1), pages 1-37, March.
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    3. Peter MacKay & Gordon M. Phillips, 2005. "How Does Industry Affect Firm Financial Structure?," The Review of Financial Studies, Society for Financial Studies, vol. 18(4), pages 1433-1466.
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