Determinants of the Corporate Financing Structure in the Energy and Mining Sectors; A Comparative Analysis Based on the Example of Selected EU Countries for 2012–2020

Jacek Barburski () and Artur Hołda ()
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Jacek Barburski: Department of Accounting, Cracow University of Economics, 31-510 Kraków, Poland
Artur Hołda: Department of Accounting, Cracow University of Economics, 31-510 Kraków, Poland

Energies, 2023, vol. 16, issue 12, 1-29

Abstract: The main aim of the paper is to examine the interdependence of corporate financing structure on selected determinants in the energy and mining sectors of the economy. In addition, a comparison of the results between these economic sectors is made. In order to increase the representativeness of the sample, countries from both the “old” European Union (Germany, France, Great Britain, Spain, Italy, and Sweden) and newly admitted countries (Poland, the Czech Republic, Hungary, Romania, Slovakia, and Bulgaria) were included in the study. The research used data from the Orbis database for 2012–2020. A one-factor linear panel model was used to verify the hypotheses. The research partly confirmed the hypotheses. A negative relationship between the financing structure and profitability in both analysed sections was clearly established. The second determinant whose influence on the financing structure in both sections was found to be unambiguous was the ratio of current liabilities to current assets. However, this influence was positive. Another determinant whose influence on the financing structure was confirmed to be unequivocal and positive in nature was the size of the company. This occurred only in the energy sector. The research revealed that other determinants, such as asset structure, interest, and noninterest tax shields, also affect the financing structure of companies, but the statistical significance of these relationships is ambiguous.

Keywords: capital structure; determinants of capital structure; managing the financing structure; financing of the energy sector; financing of the mining sector; panel model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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