The impact of selected financial indicators related to the structure of funding sources on corporate liquidity in energy sector in the Czech republic and Slovak republic
JavaScript is disabled for your browser. Some features of this site may not work without it.
The impact of selected financial indicators related to the structure of funding sources on corporate liquidity in energy sector in the Czech republic and Slovak republic
xmlui.ArtifactBrowser.SimpleSearch.filter.source:Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 42/2018
ISSN:1211-555X (Print)
Abstract:
The aim of this paper is to determine the impact of selected financial
indicators related to the structure of funding sources on liquidity of companies in
energy sector in the Czech Republic and Slovak Republic. With the purpose to fulfill
the aim, we examine existence and character of relationship between selected financial
factors (debt equity ratio, return on equity, share of fixed assets to total assets, share
of earnings before interest and taxes to total assets, equity ratio) and liquidity of the
companies in energy sector in the Czech Republic and Slovak Republic. The existence
of relationship between financial factors and liquidity of companies is tested by
correlation analysis and generalized method of moments called GMM method. We
found that corporate liquidity was positively influenced by the equity ratio and return
on equity in energy sector in the Czech Republic. We found that corporate liquidity
was positively influenced by the equity ratio and share of earnings before interest and
taxes to total assets in energy sector in the Slovak Republic. On the other hand, we
found that corporate liquidity was negatively influenced by the share of earnings
before interest and taxes to total assets, share of fixed assets to total assets in the
Czech Republic. We found that corporate liquidity was negatively influenced by the
share of fixed assets to total assets in energy sector in the Slovak Republic.