The Effect of Selected Financial Indicators on Liquidity of Companies in Selected Sectors in the Czech Republic

Markéta Šeligová
Additional contact information
Markéta Šeligová: Department of Finance and Accounting, School of Business Administration, Silesian University, Univerzitní nám. 1934/3, 733 40 Karviná, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2017, vol. 65, issue 6, 2095-2104

Abstract: The aim of this paper is to determine the effect of selected financial indicators related to the structure of funding sources on liquidity of companies in selected sectors in the Czech Republic from 2000 to 2015. With the purpose to fulfill the aim, we examine existence and character of relationship between selected financial factors related to the structure of funding sources (debt equity ratio, return on equity, share of fixed assets to total assets, share of earnings before interest and taxes to total assets) and liquidity of the companies in sectors such as mining and quarrying, manufacturing, construction, service sector and energy sector. The existence of relationship between financial indicators related to the structure of funding sources and liquidity of companies is tested by correlation analysis and regression analysis. The results show that there is the negative impact of share of fixed assets to total assets on liquidity of companies in service sector in the Czech Republic. The liquidity of companies was positively influenced by the return on equity and negatively influenced by debt equity ratio in energy sector in the Czech Republic.

Keywords: correlation; debt equity ratio; fixed assets; leverage ratio; liquidity of companies; regression analysis; return on equity (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://acta.mendelu.cz/doi/10.11118/actaun201765062095.html (text/html)
http://acta.mendelu.cz/doi/10.11118/actaun201765062095.pdf (application/pdf)
free of charge

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:mup:actaun:actaun_2017065062095

DOI: 10.11118/actaun201765062095

Access Statistics for this article

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis is currently edited by Markéta Havlásková

More articles in Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis from Mendel University Press
Bibliographic data for series maintained by Ivo Andrle ().