Capital structure of small and medium enterprises
Economy and Forecasting, 2016, issue 1, 142-156
The article analyzes the results of a research on the capital structure of small and medium business and identifies the financing peculiarities of Ukrainian and European enterprises. The author calculates the financial leverage of Ukrainian companies and shows that Ukrainian SMEs have higher level of financial leverage and risk compared with large enterprises. Structure of equity and debt financing was analyzed. It was determined that small and medium enterprises have a higher proportion of authorized capital in the structure of financial resources due to the lower possibility of attracting debt financing. The high level of retained losses of Ukrainian small and medium enterprises demonstrates the failure to finance their activities from internal sources, as well as a higher probability of bankruptcy. The author analyzed the debt structure of Ukrainian firms and revealed a significant prevalence of short-term debt in the debt structure of enterprises of all sizes due to intensive usage of trade credit. At the same time, it was found that a high level of financial leverage of European SMEs was mainly caused by intensive usage of bank lending, but not accounts payable. It was identified that the capital structure of SMEs in Italy, Portugal and Slovakia are similar to Ukrainian enterprises.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eip:journl:y:2016:i:1:p:142-156
Access Statistics for this article
Economy and Forecasting is currently edited by Iryna Bazhal
More articles in Economy and Forecasting from Valeriy Heyets
Series data maintained by Iryna Bazhal ().