Oceňování 2022, 15(2):3-16 | DOI: 10.18267/j.ocenovani.275

Branch Standards and Target Capital Structure in the Process of Investment Decision and Valuation of Enterprises

Milan Hrdý

Doc. Ing. Milan Hrdý, Ph.D. - docent na Katedře financí a oceňování podniku FFÚ VŠE Praha

The aim of this paper was to verify the accuracy of the determination of average indebtedness and branch standards in the previously mentioned branches and the analysis of the development of average indebtedness in these selected branches. The basic method used to fulfill this goal of the paper will be mainly the method of data analysis from the database of the University of Economics in Prague, Albertina, and the theoretical basis and practical conclusions from previous research. It was possible to propose a simple hypothesis that average indebtedness, and thus branch standards, will be confirmed only in certain branches. The stated hypothesis was only partially confirmed. It turns out that the established average level of indebtedness and thus branch standards in the past was quite relevant and these values were confirmed in most branches. When recommending possible volatility + (-) 5 %, the values of average indebtedness and the branch standards were stated of 50 % for branches Iron Production, Shoes Production, and Motor Vehicles, 40 % for branches Machines Production, Beverages Production and Electrical Equipment, and 35 % for the branch Pharmacy.

Keywords: Capital Structure; Optimizing; Branch Standards; Target Capital Structure; Commercial Banks; Circulation Problem

Grants and funding:

Článek je zpracován jako jeden z výstupů výzkumného projektu Fakulty financí a účetnictví VŠE Praha, který je realizován v rámci institucionální podpory VŠE IP100040.

JEL classification: G20

Published: November 18, 2022  Show citation