skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Does Capital Structure Drive Profitability in the Energy Sector?

Energies (Basel), 2021-08, Vol.14 (16), p.4803 [Peer Reviewed Journal]

2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 1996-1073 ;EISSN: 1996-1073 ;DOI: 10.3390/en14164803

Full text available

Citations Cited by
  • Title:
    Does Capital Structure Drive Profitability in the Energy Sector?
  • Author: Wieczorek-Kosmala, Monika ; Błach, Joanna ; Gorzeń-Mitka, Iwona
  • Subjects: Bankruptcy ; Capital ; Capital structure ; Debt financing ; Decision making ; Economics ; Employment ; Energy ; Energy industry ; energy sector ; Financial leverage ; Financial management ; Management decisions ; Profitability ; Profits ; Regression analysis ; Stockholders
  • Is Part Of: Energies (Basel), 2021-08, Vol.14 (16), p.4803
  • Description: This paper investigates the factors that determine the profitability of non-listed energy firms from four central European countries: Hungary, Poland, Slovakia, and the Czech Republic. We apply the regression analysis, on a large panel of firm-year observations for the 2015–2019 timespan, to verify the hypothesis on the inversed relationship between leverage and profitability of the companies performing in the energy sector. Our results support the inversed relationship for debt in total and long-term debt, which are consistent with the assumptions of the pecking order theory. However, for short-term debt, we have found a direct relationship, which confirms the assumptions of the trade-off theory of capital structure. Our work contributes to the existing debate on the interplay between financial leverage and profitability, by providing evidence for a large panel of non-listed firms, from a single sector (energy)-oriented perspective.
  • Publisher: Basel: MDPI AG
  • Language: English
  • Identifier: ISSN: 1996-1073
    EISSN: 1996-1073
    DOI: 10.3390/en14164803
  • Source: GFMER Free Medical Journals
    Coronavirus Research Database
    ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait