EconPapers    
Economics at your fingertips  
 

Relevance of Capital Structure Theories in the Service Sector

Judit Szemán ()
Additional contact information
Judit Szemán: University of Miskolc

Theory Methodology Practice (TMP), 2017, vol. 13, issue 01, 53-64

Abstract: The aim of this study is to examine the relevance of capital structure theories in the Hungarian service sector between 2008 and 2014. The service sector stands in the centre of research, as the role of this sector is becoming more and more important. Whereas the importance of other sectors has decreased in the previous years and decades, the role of services shows an increasing trend in developed societies. The paper focuses on three factors. Firstly, I examine whether the classical theory is relevant, in which there is a negative linkage between profitability and capital leverage. Secondly, I examine the linkage between liquidity and capital leverage. Finally, I examine the principle of maturity matching, namely if firms in the service sector keep the golden rule to finance their non-current assets from non-current liabilities and equity.

Keywords: corporate capital structure; services; Hungary (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://tmp.gtk.uni-miskolc.hu/volumes/2017/01/TMP_2017_01_05_53_64.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mic:tmpjrn:v:13:y:2017:i:01:p:53-64

Access Statistics for this article

Theory Methodology Practice (TMP) is currently edited by Zoltan Bartha

More articles in Theory Methodology Practice (TMP) from Faculty of Economics, University of Miskolc Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-06-29
Handle: RePEc:mic:tmpjrn:v:13:y:2017:i:01:p:53-64