Branch Standards and Target Capital Structure in the Process of Investment Decision and Valuation of Enterprises

Oborové standardy a cílová kapitálová struktura v investičním rozhodování a oceňování podniku

Milan Hrdý

Oceňování, 2022, vol. 15, issue 2, 3-16

Abstract: The aim of this paper was to verify the accuracy of the determination of average indebtedness and branch standards in the previously mentioned branches and the analysis of the development of average indebtedness in these selected branches. The basic method used to fulfill this goal of the paper will be mainly the method of data analysis from the database of the University of Economics in Prague, Albertina, and the theoretical basis and practical conclusions from previous research. It was possible to propose a simple hypothesis that average indebtedness, and thus branch standards, will be confirmed only in certain branches. The stated hypothesis was only partially confirmed. It turns out that the established average level of indebtedness and thus branch standards in the past was quite relevant and these values were confirmed in most branches. When recommending possible volatility + (-) 5 %, the values of average indebtedness and the branch standards were stated of 50 % for branches Iron Production, Shoes Production, and Motor Vehicles, 40 % for branches Machines Production, Beverages Production and Electrical Equipment, and 35 % for the branch Pharmacy.

Keywords: Capital Structure; Optimizing; Branch Standards; Target Capital Structure; Commercial Banks; Circulation Problem; Kapitálové struktura; Optimalizace; Oborové standardy; Cílová kapitálová struktura; Cirkulační problém (search for similar items in EconPapers)
JEL-codes: G20 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.18267/j.ocenovani.275

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