58 2021, XXIV, 3
Business Adminis a ion and Managemen
10.15240/ ul/001/2021-03-004
THE DETERMINATION OF FINANCIAL
STRUCTURE IN AGRICULTURE, FORESTRY
AND FISHING INDUSTRY IN SELECTED
COUNTRIES OF CENTRAL AND EASTERN
EUROPE
Pe a Růčko á1, Nicole Škuláňo á2
1 Silesian Uni e si y in Opa a, School o Business Adminis a ion in Ka iná, Depa men o Finance and Accoun ing,
Czech Republic, ORCID: 0000-0001-8558-6212, [email p o ec ed];
2 Silesian Uni e si y in Opa a, School o Business Adminis a ion in Ka iná, Depa men o Finance and Accoun ing,
Czech Republic, ORCID: 0000-0003-3715-0988, [email p o ec ed].
Abs ac : E e y economic sec o , e e y single indus y, e e y economy, and e en e e y i m has i s
speci ic inancial s uc u e. Gi en ha i is no possible o examine housands o indi idual companies
o scien i ic pu poses, i is necessa y o a leas examine he di e ences be ween indi idual sec o s,
indus ies and coun ies. A he same ime, he o ma ion and op imiza ion o he inancial s uc u e
is in luenced by a my iad o di e se ac o s ha inancial manage s should ake in o accoun in hei
decisions. Thanks o hese ac s, mo e and mo e esea ches had been c ea ed o o e hal a cen u y.
This esea ch expands knowledge in se en selec ed coun ies o Cen al and Eas e n Eu ope – he
Viseg ád G oup, Bulga ia, Slo enia and Romania. The aim o he esea ch is o e alua e, based
on he Gene alized Me hod o Momen s, he ela ionship be ween he six selec ed ac o s and he
indeb edness le el in companies belonging o he ag icul u al, o es y and ishing indus y. The
subjec o he esea ch is medium, la ge and e y la ge companies du ing he yea s 2009 o 2016.
The esea ch deals wi h he in luence o p o i abili y, liquidi y, asse s uc u e, economic de elopmen ,
in la ion and in e es a es on he o al, long- e m and sho - e m indeb edness o companies. The main
inding o he esea ch is ha companies a e in luenced by bo h in e nal and ex e nal de e minan s.
Howe e , e en hough he indus y should be neu al, ex e nal de e minan s – GDP g ow h a es,
in la ion a es and in e es a es – ha e a mo e signi ican impac on he deb le el. The esul s o his
esea ch will no only ex end cu en knowledge in he ield o co po a e inance, bu a he same ime,
he esul s may be s imula ing in se ing suppo ules o public adminis a ion and e en Eu opean
ins i u ions, as he selec ed indus y is s ongly linked o subsidy policies.
Keywo ds: Financial s uc u e, p o i abili y, liquidi y, non-deb ax shield, asse s uc u e, GDP,
in la ion, in e es a e.
JEL Classi ica ion: G32.
APA S yle Ci a ion: Růčko á, P., & Škuláňo á, N. (2021). The De e mina ion o Financial
S uc u e in Ag icul u e, Fo es y and Fishing Indus y in Selec ed Coun ies o Cen al and
Eas e n Eu ope. E&M Economics and Managemen , 24(3), 58–78. h ps://doi.o g/10.15240/
ul/001/2021-03-004
In oduc ion
E e y company needs inancial esou ces o i s
business ac i i ies be o e i s es ablishmen and
du ing i s exis ence. Fo accoun ing pu poses,
hese unds a e a anged in he balance shee ,
in which hey o m a pa called he capi al o
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Business Adminis a ion and Managemen
inancial s uc u e, which, including bo h long-
e m and sho - e m sou ces o unding, is he
subjec o his esea ch. In addi ion o he ime
s uc u e, he inancial s uc u e is u he di ided
in o equi y and deb sou ces o inancing. The
ques ion ha economis s ha e been ying o
answe o mo e han hal a cen u y is “wha he
igh a io o equi y and deb sou ces o unding
is?” We could ind s udies o a ious yea s,
such as Modigliani and Mille (1963), B adley e
al. (1984), Bokpin (2009), O lo a e al. (2020),
Růčko á and S a á ek (2020) o Jin (2021).
Un o una ely, e en in such a long ime, no
answe has been ound, because he balance
o unding sou ces is in luenced by a numbe o
ac o s and he e o e, coun less s udies dealing
wi h his issue a e s ill being published. In iew
o his ac , he e is no gene al heo y o capi al
s uc u e, as s a ed by Mye s (2001). Gi en he
numbe o known and e en unknown ac o s, i
is impo an o con inue o pay a en ion o his
a ea and examine o he samples o companies
om a ious coun ies and indus ies. Indeed,
p e ious esea ches show ha he esul s a y
widely due o he size o he companies, he
indus y, he coun y and he sample size.
All hese ac s became a mo i a ion o
p o ide his esea ch conside ing ag icul u e,
o es y and ishing indus y in se en selec ed
coun ies o Cen al and Eas e n Eu ope.
Knowledge in he ield o capi al/ inancial
s uc u e o be dissemina ed o gi en economies
should become he main bene i o his esea ch
as hose coun ies a e no so o en examined.
The dissemina ion o knowledge lies in he
ac ha he selec ed coun ies a e examined
indi idually om he pe spec i e o gi en
indus y, which is no a ma e o cou se as
he au ho s o en c ea e one panel composed
o di e en coun ies, esul s o which canno
be applied o all coun ies in he sample.
This p ocedu e can be ound, o example,
in Klappe e al. (2002), He nádi and O mos
(2010), Jõe ee (2013), and Ma ee e al.
(2012). A he same ime, he selec ed indus y
is e y o en no he subjec o esea ch. Th ee
s udies ha e been ound, which a e connec ed
o a selec ed sec o – P ášilo á (2012), Aulo á
and Hla sa (2013), Sik eland and Zhang
(2020). Companies a e also di ided by size
in o medium and la ge ones b inging hus a
posi i e aspec o he esea ch as he di e en
impac s o de e minan s can be possibly seen.
Las bu no leas , his esea ch examines a
la ge sample o companies, in o al 10,644 o
hem. I mus be said ha un o una ely no
all companies a e aken om he da abase
as some companies had ze o o undisclosed
da a. Finally, his esea ch should desc ibe
he beha iou o companies in he indus y
in each economy. And he e o e, he esul s
o his esea ch may be s imula ing in se ing
suppo ules o public adminis a ion and e en
Eu opean ins i u ions, as he selec ed indus y
is s ongly linked o subsidy policies.
In a his o ical poin o iew, as w i en
abo e, his issue has been discussed o
o e hal a cen u y. The basic and ini ial s udy
o his a ea is conside ed o be “The Cos o
Capi al, Co po a ion Finance and he Theo y o
In es men ” o 1958 by Modigliani and Mille .
Two basic heo ies o capi al s uc u e eme ged
ou o his s udy – ade-o heo y and pecking
o de heo y. B ealey e al. (2011) and ade-o
heo y seek he op imum o capi al s uc u e
h ough a balance be ween he ax ad an age
o deb and he cos o inancial dis ess. Mye s
(1984) and pecking o de heo y c ea e a
hie a chy o unding sou ces wi h he conclusion
ha equi y should be p e e ed o deb . Many
o he s udies we e based on hese wo heo ies,
and i ually all esea ches e lec ion, builds
on, and expands on hese h ee esea ches –
Modigliani and Mille (1958), Mye s (1984), and
B ealey e al. (2011). As he numbe o s udies
has g own, he numbe o known de e minan s,
coun ies and indus ies has g own as well.
This pape is o ganized as ollows.
Sec ion 1 de ines ea lie esea ches on he
inancial s uc u e and selec ed de e minan s
sugges ed by his s udy. Sec ion 2 p esen s
he esea ch me hodology, da a, and a iables
and p o ides wi h he cha ac e iza ion o
indus y and examined economies. Sec ion 3
desc ibes he esul s o he analysis o a iable
dependencies using panel eg ession. Sec ion
4 p esen s he conclusions.
1. Li e a u e O e iew
As al eady indica ed in he in oduc ion, he
o ma ion and op imiza ion o he company
inancial s uc u e is qui e a demanding ac i i y
due o he numbe o ac o s in luencing he
decisions made by he inancial manage s.
Usually, hese de e minan s a e di ided
in o hose gi en by company’s in e nal
en i onmen and hose coming om he
ex e nal en i onmen . Bo h o hese g oups a e
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ep esen ed in his esea ch. In a-company
de e minan s a e ep esen ed by company
p o i abili y, liquidi y and asse s uc u e. Non-
co po a e de e minan s a e ep esen ed by
he de elopmen o he GDP g ow h a e, he
in la ion a e and he le el o he basic in e es
a e o he gi en economy. The ollowing
sec ion will g adually men ion he assump ions
ela ed o each ac o as well as p e ious
s udies dealing wi h hem. Be o e he li e a u e
o e iew, i should be men ioned ha all
de e minan s can ha e a posi i e and nega i e
impac on he deb le el.
The posi i e impac o p o i abili y on he
indeb edness le el is p omo ed by he ade-
o heo y (B ealey e al., 2011), which says
ha i companies a e mo e p o i able, hei
inancial dis ess cos s dec ease educing he
likelihood o bank up cy and making companies
sui able o g an ing a loan. This ela ion has
been con i med by, e.g., Klappe e al. (2002),
Pinko á (2012), Aulo á and Hla sa (2013)
o ag icul u al en e p ises and Mokho a and
Zinecke (2013) in Slo enia. On he con a y,
he nega i e impac o p o i abili y is suppo ed
by pecking o de heo y (Mye s, 1984) saying
ha as p o i s g ow, so do o he pa s o i
such as e ained ea nings, which a e a e y
cheap means o inancing. This link is a mo e
common in p e ious esea ches. The nega i e
link also p e ails when deb s a e di ided in o
o al, long- e m and sho - e m ones. This
ela ion was no ed, o example, by Ni o ozhkin
(2005), Weill (2004), Č nigoj and M amo
(2009), He nádi and O mos (2010), Hanousek
and Shamshu (2011), Ma ee e al. (2012),
Mokho a and Zinecke (2013), P ędkiewicz
and P ędkiewicz (2015), Růčko á (2015b)
o Poland and Slo akia, Hang e al. (2018),
Yildi im e al. (2018), Bilgin (2019), Mo adi and
Paule (2019), O lo a e al. (2020), Touil and
Mamoghli (2020), Sik eland and Zhang (2020),
and Jin (2021).
The posi i e ela ionship be ween liquidi y
and indeb edness is explained by he ac ha i
he company is hi by an un a ou able si ua ion,
i can sell highly liquid asse s and hus su i e
he bad pe iod. Howe e , in o de o sell such
asse s, i should possess o some amoun o
such asse s o such a case. Illiquid asse s a e
di icul o sell and hei sale is loss-making.
These asse s usually include ixed asse s.
The u hs should apply ha liquid asse s a e
inanced by deb , illiquid by equi y. This ela ion
is suppo ed by he esul s o , e.g., Ma ee e al.
(2012) as o long- e m deb , Růčko á (2015b)
in he Czech Republic, Ramli e al. (2019) o
Indonesia. A nega i e impac can be caused
by a po en ial con lic be ween manage s and
owne s; i manage s could eely dispose o
he company’s asse s, hey could exp op ia e
he owne s by g adual sale. This ela ionship is
suppo ed by Lipson and Mo al (2009), Ma ee
e al. (2012) o sho - e m deb , Pinko á (2012),
Aulo á and Hla sa (2013), Růčko á (2015b) in
Poland and Slo akia, Bilgin (2019), Ramli e al.
(2019) o Malaysia.
The s uc u e o asse s has an impac on
deb acco ding o i s composi ion. A posi i e link
is expec ed o long- e m deb and a nega i e
one is expec ed o sho - e m deb . These
expec a ions ha e been e ealed by, e.g.,
Ma ee e al. (2012), P ášilo á (2012), Mokho a
and Zinecke (2013) in Bulga ia, Hunga y and
Slo enia, Hang e al. (2018), Sik eland and
Zhang (2020). These expec a ions a e gi en
by a a iable ep esen ing his de e minan .
Usually i is he a io o angible and o al asse s.
Tangible asse s a e ixed asse s ha can be used
as colla e al when applying o a loan. Howe e ,
he e a e se e al pi alls ha dis up hese
expec ed links. The i s one, he o ien a ion o
he gi en economy inancial sys em is as hese
links apply only in a bank-o ien ed sys em as
he pledge canno be used on he inancial
ma ke s, as s a ed by, e.g., Acedo-Rami ez and
Ruiz-Cabes e (2014). The size o he company
is he second di icul y because a la ge numbe
o angible asse s should be a ailable o
medium-sized and especially la ge companies
as s a ed by Klappe e al. (2002), Daskalakis
e al. (2017) and Lou enço and Oli ei a (2017).
The las p oblem is he indus y unde s udy;
indus ies wi h a la ge amoun o s ocks, such
as ag icul u e, canno use s ocks as colla e al
as con i med by he esul s o , e.g., Aulo á and
Hla sa (2013) and Růčko á (2015a).
The posi i e impac o economic
de elopmen on he indeb edness le el can
be explained by he ac ha i he economy
h i es, co po a e p o i s usually inc ease,
and in his case, we e u n o he explana ion
as in p o i abili y h ough ade-o heo y. This
link was con i med by, e.g., Gaju el (2006)
o long- e m deb , Hanousek and Shamshu
(2011) o unlis ed companies, Yinusa e al.
(2017) o long- e m deb , Ramli e al. (2019)
o Indonesia. On he o he hand, when he
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Business Adminis a ion and Managemen
economy is h i ing and p o i s a e g owing,
pecking o de heo y can also be applied and a
nega i e link can be assumed. This link can be
ound, o example, in Gaju el (2006) o o al
and sho - e m deb , Cheng and Shiu (2007),
Bokpin (2009), Hanousek and Shamshu
(2011) o lis ed companies, Jõe ee (2013) o
unlis ed companies, Yildi im e al. (2018), Ramli
e al. (2019) o Malaysia.
The nega i e ela ionship be ween he
in la ion a e and he deb a io is assumed
o long- e m deb , as he in la ion a e should
educe he al eady exis ing deb oge he
wi h he decline in he eal in e es a e. This
ela ionship can be ound, o example, in
Gaju el (2006) as o o al indeb edness,
Jõe ee (2013), Öz ekin (2015), Daskalakis e
al. (2017), Bilgin (2019). A posi i e ela ionship
be ween he in la ion a e and deb is expec ed
only o sho - e m deb . This expec a ion is
based on he ac ha when lowe ing he eal
in e es a e, c edi o s can hedge hemsel es
by e.g. linking he in e es a e o in la ion.
Howe e , i is possible o secu e i in only he
sho - e m pe iod. This ela ionship can be
ound, o example, in Hanousek and Shamshu
(2011), Yinusa e al. (2017), Ramli e al. (2019).
The basic in e es a e is he las a iable.
In his case, he impac on he deb le el is
expec ed acco ding o he ma u i y o he
economy. The assump ion is ha de eloped
coun ies will show a posi i e bond and
de eloping coun ies will show a nega i e
bond. This ac is in luenced by he di e ence
be ween hese coun ies in e ms o he quali y
o ins i u ional, legal and egula o y en i onmen
as epo ed by Yinusa e al. (2017).
As i comes o he ex e nal ac o s, i should
be men ioned ha a numbe o s udies ound
some link, which was un o una ely no
s a is ically signi ican . The e o e, i is e y
impo an o include hese ac o s egula ly in
s udies in o de o ob ain as many s a is ically
signi ican esul s as possible.
2. Da a and Me hodology
The subjec o his esea ch, companies
classi ied acco ding o he NACE classi ica ion
in sec ion A – Ag icul u e, o es y and ishing
a e. The inpu ime se ies come om he O bis
and Wo ld Bank da abases. A o al o 10,644
companies we e analyzed, o which 9,771
a e medium-sized and 873 a e la ge and e y
la ge companies. Un o una ely, hese a e no
all companies o he O bis da abase as some
companies lacked some da a o he e we e
o en ze o da a ound hus hese companies
we e excluded. The analysis o sub-indus ies
showed ha in almos all economies he sub-
indus y C op and animal p oduc ion, hun ing
and ela ed se ice ac i i ies domina es, in
which 85% o medium-sized companies and
65% o la ge companies om he o al sample
examined ope a e. Howe e , in panel eg ession
analyses all hese sub-indus ies oge he o
each coun y, as in some economies he e is
only one o no company, and he e o e i would
no be possible o examine he de e minan s
o he impac on he inancial s uc u e.
Resea ch seeks o compa e he whole indus y
ega dless o i s indi idual pa s. The analysis
o he companies includes he pe iod om 2009
o 2016.
Rega ding he analyzed economies, se en
economies o Cen al and Eas e n Eu ope we e
selec ed – he Czech Republic (CZ), Slo akia
(SK), Poland (PL), Hunga y (HU), Slo enia
(SI), Bulga ia (BG), and Romania (RO). This
is an ex ended Viseg ád G oup, which o en
includes Aus ia, bu in his indus y, almos all
companies ha e no disclosed p o i alues,
which is an impo an pa o he calcula ions
and o he analysis i sel . Slo enia, Bulga ia,
Romania and Aus ia a e e y o en associa ed
wi h he V4, as ep esen a i es o hese
coun ies a end a ious mee ings o his g oup
and coope a e wi h i . Those coun ies we e
chosen due o he lack o s udies conside ing
hem and he indus y.
The aim o he esea ch is o e alua e,
based on he Gene alized Me hod o Momen s,
he ela ionship be ween he six selec ed ac o s
and he indeb edness le el in companies
belonging o he ag icul u al, o es y and ishing
indus y. The esea ch is p o ided a h ee le els
acco ding o he pe iod, in which unding sou ces
a e used. The i s le el, he use o o al deb
esou ces is, he second le el includes long- e m
deb esou ces and he hi d one conside s he
use o sho - e m deb esou ces.
Wi h ega d o he o mula ed aim and
li e a u e o e iew, wo esea ch ques ions a e
o mula ed:
1. A e he e di e ences in impac o e
di e en ma u i ies o use o he unding
sou ces used?
2. Does he p ice o inancial ex e nal sou ces
a ec he use o hem?
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Tab. 1 shows he assumed links based on
a li e a u e o e iew. To assume he impac
o he in e es a e on he indeb edness le el,
coun ies we e di ided acco ding o he deg ee
o economic de elopmen in o de eloped and
de eloping economies as s a ed in he li e a u e
o e iew. The di ision is based on he di ision
by he IMF – Wo ld Economic Ou look Oc obe
2020.
2.1 Va iables
In he empi ical pa , h ee models o h ee
o ms o indeb edness a e c ea ed wi hin he
panel eg ession, and hus indeb edness ac s
as an endogenous a iable. The a iable also
akes h ee o ms – he a io o o al liabili ies
o equi y (DER), he a io o long- e m liabili ies
o equi y (DER_L) and he a io o sho - e m
liabili ies o equi y (DER_S). The ollowing
dis ibu ion o he endogenous a iable can
be ound, o example, in Pinko á (2012),
Mokho a and Zinecke (2013, 2014), Sik eland
and Zhang (2020).
Fu he mo e, he e a e six exogenous
a iables in each model ep esen ing selec ed
de e minan s o he inancial s uc u e. O
cou se, he ac o s ha a ec he capi al
s uc u e a e innume able. Fac o s ha a e
clea ly ela ed o deb sou ces ob aining we e
selec ed o his esea ch. Companies ha e o
each a ce ain le el o p o i abili y in o de o
someone o lend hem. A he same ime, i is
usually equi ed o ha e a ce ain amoun o
highly liquid asse s in he e en o immedia e
epaymen o liabili ies, and companies should
also ha e a ce ain amoun o angible asse s
ha can be used as colla e al o aise ex e nal
esou ces. The de elopmen o he economy is
ela ed o he willingness o po en ial c edi o s.
The in e es a e and he in la ion a e a e linked
o he cos o deb inancing. Howe e , ac o s
we e also selec ed on he basis o equency in
p e ious s udies, as some ac o s a e abundan ,
bu o some o hem, he e is no la ge numbe
o s udies wi h mainly s a is ically signi ican
esul s.
Speci ic ac o s include he sha e o EBIT
and o al asse s (ROA). This de e minan is
p esen in almos e e y s udy dealing wi h
his issue, e.g., P ášilo á (2012), Aulo á and
Hla sa (2013), Hang e al. (2018), Yildi im e
al. (2018), Bilgin (2019), Mo adi and Paule
(2019), O lo a e al. (2020), Touil and Mamoghli
(2020), Sik eland and Zhang (2020), Jin (2021).
Liquidi y, in ou case quick a io (L2), can be
ound, o example, in he s udies o Ma ee e
al. (2012), Pinko á (2012), Aulo á and Hla sa
(2013), Růčko á (2015b), Bilgin (2019), Ramli
e al. (2019). The asse s uc u e as he sha e
o angible asse s and o al asse s (SA) is
also a e y nume ous ac o . I can be ound,
o example, in P ášilo á (2012), Aulo á and
Hla sa (2013), Mokho a and Zinecke (2013),
Daskalakis e al. (2017), Hang e al. (2018),
Lamb inoudakis e al. (2019), Sik eland and
Zhang (2020), Jin (2021).
The las h ee de e minan s ep esen he
ex e nal en i onmen o he company. Al hough
hese ac o s a e p esen in p e ious s udies,
he e is no a la ge numbe o s udies wi h
s a is ically signi ican esul s. The GDP g ow h
a e can be ound in he s udies o Hanousek
and Shamshu (2011), Jõe ee (2013), Yinusa
e al. (2017), Yildi im e al. (2018), Ramli e al.
(2019). The in la ion a e (INF) was examined,
o example, by Öz ekin (2015), Yinusa e al.
To al deb Long- e m deb Sho - e m deb
P o i abili y/liquidi y − − −
Liquidi y − − −
Asse s uc u e − + −
In la ion − − +
GDP g ow h a e + + −
In e es a e – CZ, SK, SI + + +
In e es a e – PL, HU, RO, BG − − −
Sou ce: own
Tab. 1: Expec ed ela ionships be ween selec ed ac o s and indeb edness le el
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Business Adminis a ion and Managemen
(2017), Huong (2018), Daskalakis e al. (2017),
Bilgin (2019), Ramli e al. (2019). Dependency
be ween le e age and he basic in e es a e o
he economy (IR) we can ind in he s udies o
Bokpin (2009), Yinusa e al. (2017), Daskalakis
e al. (2017), Ramli e al. (2019).
2.2 Me hodology
Reg ession analysis was chosen o de e mine
he ela ionship be ween endogenous and
exogenous a iables. Mo e speci ically, panel
eg ession, he use o which is app op ia e
wi h espec o a la ge sample o companies
and de e minan s ha a e he subjec o his
esea ch. The use o panel eg ession and
panels allows c ea ing mo e dynamic model
while moni o ing company he e ogenei y.
Howe e , a simple panel eg ession – he
leas squa es me hod is insu icien o his
esea ch as he s udy pe iod is ela i ely sho
and also equi es s a iona y da a, which would
elimina e a numbe o inancial se ies and he
esul ing models would no ha e o con ain all
he a iables (usually de e minan s o ex e nal
en i onmen ) (P ůcha, 2014).
As epo ed by Jaganna han e al. (2002),
he wo-s age Gene alized Me hod o Momen s
(GMM) elimina es sho comings o o he
me hods which can be used o business da a
analysis. A he same ime, o e all, his me hod
was de eloped p ima ily o inancial esea ch.
This me hod was i s explained and gi en
some ounda ion in a s udy by A ellano and
Bond (1991). Subsequen ly, he model was
de eloped and shaped in o he s udies.
The gene al a ibu es o his me hod a e
desc ibed in s udy o Roodman (2009): sui able
o a la ge se o da a, which, a he same ime,
may no include a long pe iod o ime; exis ence
o a linea unc ional ela ionship; p esence
o a ixed indi idual e ec s; on he le side o
equa ion, he e is only one dependen a iable
depending, among o he hings, on i s own
lagged alue; o a change, an independen
a iable does no ha e o be gi en exac ly
(which means ha he e may be a co ela ion
be ween pas and p esen e o s); and inally
au oco ela ion and he e oskedas ici y, which
a e no es ed in any way wi hin his me hod
( o example unlike he leas squa es me hod),
should no be ac oss indi idual obse a ions,
bu may be wi hin hem.
A signi ican posi i e e ec o his me hod
acco ding o Ullah e al. (2018), he solu ion
o he p oblem o endogenei y = co ela ion
be ween he independen a iable and he e o
e m is. This me hod conceals ce ain elemen s
egula ing he sou ces o endogenei y, which
a e conside ed unobse ed he e ogenei y,
simul anei y and dynamic endogenei y. These
elemen s include, o example, he al eady
men ioned lagged alue o he dependen
a iable, which o ms one o he independen
a iables on he igh side o he equa ion.
Fu he mo e, his au ho s a es ha i is
necessa y o es he accu acy o he model
wi h espec o he possible occu ence o
au oco ela ion and he e oskedas ici y. The e
a e a numbe o es s. This esea ch uses he
Sa gan es . The esul s o his es speci ically
show he ex en o which he model is able o
p o ide almos he same esul s e en i we
sligh ly change i s pa ame e s. The model is
buil co ec ly i i s inal alues a e highe han
0.05. The ollowing equa ions cap u e he
analyzed ela ionships be ween a iables:
Yi = α0 + β1 * Yi –1 + β2 * ROAi +
+ β3 * L2i + β4 * SAi + β5 * GDPi +
+ β6 * INFi + β6 * IRi + εi ;
(1)
whe e Yi ep esen s he endogenous a iable
DER/DER_L/DER_S, i.e., some o m o
indeb edness o he i- h numbe o companies
in he gi en economy in he selec ed indus y
o he pe iod 2009–2016. Exogenous a iables
deno ing indi idual de e minan s a e in he
coe icien s β1 – β
6. Among he exogenous
a iables is also Yi -1, which is gene a ed
au oma ically by he model and allows modeling
he mechanism o pa ial adap a ion in a dynamic
model. This a iable indica es he lagged alue
o he endogenous a iable wi h one-yea lag
speci ically as all da a ep esen an annual
equency. The las a iables a e he symbols
α and ε, which a e also an au oma ic pa o
he model and ep esen he cons an and he
andom componen o he model. The andom
componen con ains all o he de e minan s o he
inancial s uc u e, which he esea ch does no
deal wi h and canno be neglec ed.
2.3 Cha ac e iza ion o Indus y
As o he indus y, ag icul u e, o es y and
ishe y can be conside ed he neu al indus y,
in which companies p oduce i al p oduc s hus
hei de elopmen is no en i ely linked o he
de elopmen o he whole economy. Howe e ,
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64 2021, XXIV, 3
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his indus y is a ec ed by na u al condi ions –
especially clima ic condi ions. The de elopmen
o hese condi ions a ec s his indus y di ec ly
and indi ec ly. Fo example, ag icul u e, o es y
and logging a e di ec ly a ec ed by wea he
changes and, in ecen yea s, by i s a ypical
whims, which ha e a a he nega i e e ec on
ag icul u al p oduc ion. Fo ins ance, in 2012,
Eu ope was plagued by ex eme os s o in
2015, he e was se e e d ough and hea .
F om he s uc u e o he e i o y om he
CIA da abase, i was ound ha Romania and
Hunga y ha e he la ges amoun o ag icul u al
land (60.7% and 58.9% o e i o y). By con as ,
Slo enia has he leas amoun o ag icul u al
land (22.8% o e i o y). In all coun ies excep
Slo enia, a able land domina es, bu in Slo enia
i is pe manen pas u e.
I is well known in Eu opean coun ies
ha ag icul u e, o es y and ishe y do no
con ibu e signi ican ly o GDP – in a e age
3.6%. A he same ime, he main p oduc s
o his indus y a e e y simila in selec ed
economies: po a oes, whea , ege ables, suga
bee , co n, ui s, hops, sun lowe seeds, eggs,
pigs, sheep, ca le, and poul y.
The s uc u e o he e i o y om he CIA
da abase also shows wha pe cen age o he
e i o y is occupied by o es s. The la ges a ea
(62.3%) can be ound in Slo enia. As i comes
o he composi ion o o es s – coni e ous
o es s p edomina e in Poland and he Czech
Republic; b oadlea o es s p edomina e in
Romania, Bulga ia, Hunga y and Slo akia. In
he a o emen ioned Slo enia, i is i y- i y.
The las pa o he indus y is ishe y. Las
bu no leas , he s uc u e o he e i o y om
he CIA da abase con ains he pe cen age
o he e i o y occupied by wa e a eas – on
a e age i is a ound 2.4%. O cou se, he e a e
esh bodies o wa e in all coun ies, bu sal y
ones a e no a ma e o cou se. The Czech
Republic, Slo akia and Hunga y a e landlocked
coun ies wi hou access o any sea o ocean.
Poland has access o he Bal ic Sea, Romania
and Bulga ia o he Black Sea and Slo enia
o he Ad ia ic Sea. To compile in o ma ion on
he sub-indus y, he Wo ld Bank da abase
( ishing p oduc ion s a is ics) was used, which
con ains he olume o aqua ic species caugh
by a coun y o all comme cial, indus ial,
ec ea ional and subsis ence pu poses in ones.
To b ing an idea, how much he esea ched
economies p oduce, he numbe s o p oduc ion
olume we e con e ed o pe cen age o show
by how many pe cen hose coun ies con ibu e
o he Eu opean Union ishe ies p oduc ion.
The Polish economy shows he la ges sha e
– 3.9%. The emaining economies ange
om 0.03 o 0.4%, which means ha ishe y
is no a signi ican economic ac i i y o gi en
economies.
2.4 Cha ac e iza ion o Economic
De elopmen in Selec ed
Economies
Following he cha ac e is ics o he indus y, i is
also app op ia e o cha ac e ize he economic
de elopmen in selec ed coun ies. Each
o he economies has had i s own speci ic
de elopmen , bu he wo ld and Eu ope
ha e been a ec ed by se e al e en s. A he
beginning o he pe iod unde e iew, he global
inancial c isis subsided, which u ned in o a
global economic c isis. In Eu ope, his c isis
was ollowed by a deb c isis associa ed mainly
wi h he coun ies o sou he n Eu ope and
I eland. The la es e en , he global slowdown in
economic g ow h in 2013 was. Se en selec ed
economies eac ed di e en ly o hose e en s.
The Polish economy is he only economy
ha ing no been hi ha d by any o hese e en s,
and has e en g own in GDP h oughou .
Al hough i is ue ha in 2012 and 2013, he
g ow h was lowe (1.61 and 1.39%) compa ed
o he a e age g ow h be o e and a e hese
yea s, which was o e 3%. Poland is also he
only coun y in he Eu opean Union ha did
no unde go he ecession du ing he c isis
pe iod 2009–2013 and i s GDP g ew by 2.9%
yea on yea on a e age. The eason o his
g ea de elopmen , he s imulus package
a e joining he Eu opean Union is, Eu opean
subsidies, co-o ganiza ion o he Eu opean
Foo ball Championship in 2012 (high public
in es men ), he size and ela i e sepa a eness
o he economy. In imes o c isis, he economy
was suppo ed by s ong domes ic demand.
Bulga ia is ano he economy ha did no
ha e majo p oblems in c ises. In 2009, GDP
ell, unemploymen and he go e nmen de ici
inc eased. In 2012 and 2013, GDP g ew, bu
a a e y slow pace. Howe e , despi e hese
luc ua ions, he economy unc ioned wi hou
majo p oblems.
The Czech Republic eme ged ela i ely
well om he inancial c isis, al hough GDP
ell sha ply in 2009, bu he economy did no
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ha e majo p oblems. The p oblems came only
wi h he onse o he global slowdown, when
GDP ell in 2012 and 2013 due o a decline in
domes ic demand and in es men as well as
o eign demand. Consume s’ demand declined
as household disposable income declined.
Companies educed in es men s wi h ega d
o iscal es ic ions in 2012 and he upda e
o ax legisla ion in 2013. In he same pe iod,
exchange a e in e en ions we e in oduced by
he Czech Na ional Bank; hese in e en ions
emained ongoing om 2013 o 2017. A ailu e
o mee he in la ion a ge and de la ion dange
was he eason o doing so.
Slo akia was no signi ican ly a ec ed by
he inancial c isis ei he ; howe e , in 2009,
GDP ell by almos 6%. The decline in o eign
demand and in p oduc ion was he eason
o i , especially in he p o-expo indus ies
(mainly he au omo i e indus y, which in his
pe iod accoun ed o one qua e o he Slo ak
GDP). In he ollowing yea s, GDP g ew, e en
in 2012/2013 al hough in hese yea s, he
inc ease was lowe . The eason why Slo akia
was no hi ha d by he c isis can be ound in
bo h he long- e m illiquid s ock exchange and,
abo e all, in he ixa ion o he Slo ak ko una o
he Eu o as Slo akia en e ed he Eu o a ea a
he beginning o 2009.
The nex h ee economies we e no so
lucky and, un o una ely, he inancial c isis hi
hem ha d. Slo enia wen h ough he same
de elopmen s in he eal es a e and mo gage
ma ke s as he Uni ed S a es did, which
igge ed he c isis. Un o una ely, he e was
also a eal es a e bubble, which was associa ed
wi h mo gage inancing. F om 2008 o 2014,
he en i e eal es a e ma ke and p ices ell.
Following his c isis, Slo enia wen s aigh o he
banking c isis in 2013. This c isis had i s o igins
in excessi e isk- aking, poo managemen o
s a e-owned banks and insu icien supe ision.
Un o una ely, mos banks we e s a e-owned.
Despi e hese signi ican p oblems, Slo enia
did no eques in e na ional assis ance and
he economy s abilized in 2015 hanks o local
go e nmen e o ms.
Hunga y was signi ican ly in luenced by he
c isis due o poo go e nmen pe o mance,
high indeb edness and an expo -o ien ed
economy. Abo e ha , he c isis had ano he
impac he e in ol ing exchange a es and
cu encies; companies and o dina y ci izens
o en we e bu dened by loans and mo gages
in Eu os o , mo e o en, in Swiss ancs.
The c isis was also accompanied by a o in
weakening, which signi ican ly inc eased he
indeb edness le el o hese en i ies. In 2008, in
o de o s abilize he economy, he go e nmen
was o ced o apply o an in e na ional loan,
which i ecei ed in amoun o almos 6.5 billion
om he IMF, WB and he EU. Un o una ely,
he subsequen g ow h did no las long as he
Hunga ian economy was also hi by a slowdown
in 2012 and 2013.
The las economy conside ed, Romania is,
which also had o apply o an in e na ional loan
in 2009, which i ecei ed in he amoun o 20
billion. This loan s eng hened o eign exchange
ese es and e i alized he c edi ma ke . The
economy eco e ed and e en g ew as one o
he ew du ing 2012/13.
2.5 The Amoun and Composi ion
o Liabili ies and Capi al S uc u e
in Indi idual Economies
Be o e analyzing he esul s o he eg ession
analysis, i is impo an o analyze he dependen
a iable, i.e., indeb edness. In Tab. 2, we can
see he a e age alues o medium and la ge
companies in e ms o non-cu en liabili ies
(NCL), cu en liabili ies (CL), deb , equi y and
deb -equi y a io.
Non-cu en liabili ies include long e m
liabili ies o he company, which consis o long-
e m inancial deb s (e.g., loans, c edi s, bonds),
o he long- e m liabili ies ( ade deb s, g oup
companies, pension loans, e c), p o isions
(social secu i y, axes, e c) and de e ed axes.
Cu en liabili ies consis o loans (e.g., o c edi
ins i u ions, pa o long- e m inancial deb s
payable wi hin he yea , bonds, e c), deb s o
supplie s and con ac o s ( ade c edi o s), and
o he cu en liabili ies (pension, pe sonnel
cos s, axes, in ag oup deb s, accoun s
ecei ed in ad ance, e c). Deb is hen he sum
o he non-cu en and cu en liabili ies. Equi y
includes capi al and o he sha eholde s unds.
We can see ha he deb is no excessi ely
high; he highes alues (2.1) o he deb -equi y
a io a e eached by Romanian medium-sized
companies. I is ob ious ha deb s exceed
equi y wice. This may be caused by he ac ha
Romanian ag icul u e was s ill no as e icien
as i was du ing he pe iod unde e iew. This
indus y was poo ly echnically equipped,
unp oduc i e and lacked inances. Liabili ies’
inc ease could be caused by e.g. subsidies o
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66 2021, XXIV, 3
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Eu opean unds o o he in es men incen i es
ha he indus y in Romania despe a ely
needed. Slo ak medium-sized companies,
Slo enian companies and Bulga ian la ge
companies a e o he ones, in which he deb -
equi y a io exceeded 1. Howe e , he alues
a e no signi ican ly high.
A e iew o he li e a u e indica ed wha he
s uc u e o asse s in ag icul u e should p obably
look like, om which he s uc u e o liabili ies
de i es. We see ha only in he case o medium-
sized Czech and Polish companies’, long- e m
liabili ies p e ail and, in all cases, no signi ican ly.
The p edominance o sho - e m liabili ies
in Czech ag icul u al companies was also
e ealed, o example, by S ehel e al. (2019).
Liabili ies a ising om business ela ionships
wi h supplie s a e he main componen in hese
sho - e m liabili ies, on a e age.
3. Resea ch Resul s and Discussion
Tab. 3 shows he esul ing panel eg ession
coe icien s o medium-sized ag icul u al
companies o he h ee o ms o deb . I is
clea ha comple e esul s o all economies
and de e minan s a e no a ailable o any o m
o deb . Some economies we e excluded due
o non-compliance wi h he Sa gan es . I s
esul s a e p esen ed in he las column. The
missing economies did no exceed alue o
0.05, so he models we e no obus and had no
signi icance. The emaining economies passed
his es and in he las column, we see ha he
alues exceed he gi en alue.
As men ioned in he Me hodology sec ion,
he GMM model con ains an au oma ic a iable
– he lagged alue o he dependen a iable,
he coe icien s o which a e cap u ed in he i s
column. We see ha mos o hese coe icien s
a e s a is ically signi ican . The posi i e impac
p e ails, which means ha i companies used
deb inancing in he p e ious pe iod, hey
would likely use i in he ollowing pe iod hus
hey would inc ease he deb . On he o he
hand, he coe icien s a e so low ha we canno
p ac ically alk abou any impac .
Fo p o i abili y, all o ms o indeb edness
we e expec ed o ha e a nega i e impac
on he deb le el. Such impac was me by
Czech, Polish, Bulga ian and Romanian
companies. These esul s we e also con i med
in s udies in ol ing hese economies by he
ollowing au ho s – Weill (2004), Ni o ozhkin
(2005), P ášilo á (2012) also o ag icul u e,
Mokho a and Zinecke (2013), P ędkiewicz
and P ędkiewicz (2015), Růčko á (2015b) o
Polish companies. On he o he hand, Růčko á
(2015a, 2015b) e ealed a posi i e impac
o p o i abili y on he indeb edness le el in
Czech companies, bu hey we e companies
o he cons uc ion, manu ac u ing and ene gy
indus ies. This was expec ed in Poland and
Bulga ia because hese economies p ospe ed
du ing he pe iod unde e iew and did no
ha e majo economic p oblems. The nega i e
impac o p o i abili y e en ma ched he GDP
g ow h a es in hese coun ies being also
nega i e indica ing ha companies p e e ed o
CZ SK PL HU SI BG RO
NCL_medium 56% 27% 53% 35% 40% 39% 46%
NCL_la ge 42% 38% 35% 31% 39% 30% 36%
CL_medium 44% 73% 47% 65% 60% 61% 54%
CL_la ge 58% 62% 65% 69% 61% 70% 64%
Deb _medium 41% 53% 43% 36% 57% 45% 68%
Deb _la ge 16% 28% 34% 44% 51% 49% 60%
Equi y_medium 59% 47% 57% 64% 43% 55% 32%
Equi y_la ge 84% 72% 66% 56% 49% 51% 40%
Deb -equi y a io_medium 0.70 1.10 0.76 0.59 1.31 0.82 2.10
Deb -equi y a io_la ge 0.20 0.39 0.53 0.77 1.07 1.10 1.49
Sou ce: own based on he da a om O bis da abase
Tab. 2: The amoun and composi ion o liabili ies and capi al s uc u e
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in e es a e inc eases/dec eases ha ha e had
a signi ican impac on he choice o unding
sou ces. The Slo ak and Czech economies
we e among he coun ies wi h e y low in e es
a es, which was ob iously used by ag icul u al
companies, so in e es a e announcemen s
should be ocused on. In Hunga y, ag icul u e
is one o he mos impo an pa s o he
na ional economy. The economy has p ospe ed
since he middle o he pe iod unde e iew
con inuing in he ollowing yea s. As a esul ,
Hunga ian companies we e able o use mo e
deb inancing, which e lec ed he p o i abili y.
Highe a e age in la ion a e educed he alue
o cu en deb , which implies ecommenda ions
ega ding in la ion expec a ions. As i comes o
Slo enian companies, hey we e e y a ec ed
by he in la ion a e. A e age in la ion a e was
a ound 1%, bu e en ha was enough o educe
he eal in e es a e, which, gi en he le el
o a e (which was a ound ze o), mean e y
cheap deb inancing wi h e y good impac on
p o i abili y.
Conclusions
This esea ch ocused on he inancial s uc u e
and selec ed de e minan s ha could a ec i .
The ag icul u e, o es y and ishing indus y
in se en selec ed economies o Cen al and
Eas e n Eu ope we e he subjec o he esea ch,
namely V4, Romania, Bulga ia and Slo enia.
The inancial s uc u e was ep esen ed by he
o al, long- e m and sho - e m indeb edness o
he companies. As he speci ic de e minan s,
p o i abili y, liquidi y, asse s uc u e, GDP
g ow h a e, in la ion a e and he basic in e es
a e o he economy we e used. A o al o wo
esea ch ques ions we e es ed on 10,664
companies, o which 9,771 we e medium-sized
and 873 la ge companies. The companies we e
analyzed o he pe iod 2009 o 2016 using he
Gene alized Me hod o Momen s. The aim o he
esea ch was o analyze he impac o selec ed
de e minan s on he inancial s uc u e o se en
selec ed economies belonging o he indus y o
ag icul u e, o es y and ishing. Wi h ega d o
he o mula ed aim and li e a u e o e iew, wo
To al deb
DER(−1) ROA L2 SA GDP INF IR
SK −0.315a25.927a−557.025b125.592c
PL 2.046b−30.784a−81.911b325.220a
HU −0.370a2.898a 331.008a −176.022a
SI −3.380b0.672a
Long- e m deb
CZ −0.082a 1.782b0.578c5.362b
SK −10.254b0.014a −347.718a 4.864a
HU −0.406a −7.710a−415.431a
BG −0.317b−0.432a −82.639a
RO 0.002a−53.024a −44.720a
Sho - e m deb
CZ −1.368b 1.671c−2.676a−6.022a
PL 2.329c −0.107a −396.134a −476.050c
SI 0.481a9.948a−0.090a 15.104b
BG −0.504a −0.228a 59.289a−167.214a
Sou ce: own based on da a om O bis da abases
No e: Symbols a, b, o c indica e signi icance a 1%, 5%, o 10%.
Tab. 4: GMM o la ge and e y la ge companies
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esea ch ques ions we e o mula ed, answe s
o which we e o be ound wi hin he esea ch:
1. A e he e di e ences in impac o e
di e en ma u i ies o use o he unding
sou ces used?
2. Does he p ice o inancial ex e nal sou ces
a ec he use o hem?
Wi hin he esea ch, pa ial aims we e
se – o ind di e ences be ween he impac
o de e minan s on he inancial s uc u e o
medium companies and la ge companies. An
analysis o he inancial s uc u e was also linked
o his pa ial aim. This analysis showed ha
sho - e m liabili ies p edomina e in he capi al
s uc u e ega dless o he company size. Fo
la ge companies, he p edominance o sho -
e m liabili ies was highe han o medium-sized
companies. A he same ime, la ge companies
we e, on a e age, less indeb ed han medium-
sized companies. Rega ding he asse s uc u e,
depending on he indus y, in en o ies should
be mo e ep esen ed, as ag icul u ally o ien ed
companies, which a e cha ac e ized by a la ge
amoun o in en o ies, clea ly domina e in
almos all coun ies. In en o ies o medium-
sized companies accoun ed o on a e age
17% o o al asse s, o la ge companies his
a io was lowe , only 12%.
As o he impac o indi idual de e minan s,
bo h in e nal and non-co po a e ac o s had
an impac on he deb le el. Howe e , he
ac o s o he ex e nal en i onmen – economic
de elopmen , he in la ion a e and he basic
in e es a e had a s onge impac . A o al o
se en ac o s we e examined, he esul s o
which a e p esen ed below.
The i s a iable, he annual lagged alue
o he deb i sel was. Rega dless o company
size, he impac was e y small, excep o
la ge Polish companies, whe e his impac was
al eady in single digi s o posi i e alue. The
posi i e impac o hese companies means
ha i hey used deb inancing in he p e ious
pe iod, hey would use i in he ollowing pe iod,
which would inc ease he deb e en mo e. In
a mo e de ailed analysis o he indeb edness
o Polish la ge companies, his was indeed he
case o almos he en i e pe iod unde e iew.
F om 2009 o 2015, deb inc eased om PLN
3.8 billion o PLN 9.1 billion. In 2016, deb
dec eased o he alue o PLN 8.2 billion. Due
o he posi i e coe icien , i could be expec ed
ha deb would g ow in he coming yea s, bu
gi en he cu en pandemic, i is no possible o
plan he u u e de elopmen using p e ious da a
and impac s. The emaining impac s we e e y
low, howe e , o medium-sized companies, an
indica ion o a posi i e impac p e ailed, while
o la ge companies, an indica ion o a nega i e
impac p e ailed.
As o he impac o p o i abili y, he e was
posi i e and nega i e impac seen on bo h ypes
o companies; o bo h ypes o companies,
he nega i e impac s sligh ly ou weigh he
posi i e ones. The posi i e impac means ha
i companies’ p o i s g ew, hey a oided he isk
o bank up cy and we e a ac i e o c edi o s.
A he same ime, lende s would o e hem
mo e deb inancing op ions han usual. On
he con a y, he nega i e impac means ha in
imes o g owing p o i s, companies p e e ed
o use hese esou ces o inance hei
business ac i i ies. Simul aneously, he impac
o p o i abili y in speci ic coun ies was o en
associa ed wi h he impac o de elopmen in
GDP g ow h. Ve y o en hese e ec s a e he
same. When compa ing coun ies ega dless o
companies’ size, we can say ha he nega i e
impac was seen mos o en in he Czech
Republic, Poland, Bulga ia and Slo akia. These
economies de eloped wi hou majo economic
di icul ies du ing he pe iod unde e iew hus
g owing p o i s in a pe iod o economic peace
and p ospe i y led companies o use own
sou ces o inancing no o be o e bu dened
in imes o wo se economic condi ion. In he
u u e, i can be expec ed ha i he e is a
ela ionship be ween p o i abili y and economic
de elopmen , he p o i abili y coe icien s a e
likely o ha e he same sign as he economic
de elopmen coe icien s. Gi en ha he
indus y should be neu al, he e will p obably
be no highe luc ua ions in p o i abili y due o
he pandemic.
Rega dless o he company size, he
impac o liquidi y was a he nega i e and, a
he same ime, e y low hus we canno alk
abou any in luence a all. Ra he , his indica es
he di ec ion, in which deb would be a ec ed
i liquidi y had a mo e signi ican impac . A
nega i e indica ion means ha he mo e liquid
asse s a company has, he mo e i s deb
would dec ease, as high liquidi y can lead o
insu icien in es men ac i i ies and he e o e,
no deb inancing would be needed.
The amoun o angible asse s had
a p edominan ly nega i e impac on deb le el.
Fo medium-sized companies, his impac was
EM_3_2021.indd 74 8.9.2021 9:57:50
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3, XXIV, 2021
Business Adminis a ion and Managemen
sligh ly mo e p onounced. A a he posi i e
in luence was usually expec ed. Howe e ,
gi en ha he sample examined was domina ed
by ag icul u al companies, a nega i e in luence
could also be expec ed wi h ega d o he
possible la ge amoun o s ocks. The nega i e
impac o his a iable on he indeb edness le el
means ha he mo e angible asse s companies
ha e ha can be used as colla e al, he mo e
indeb edness would dec ease as hese asse s
canno be used o hedge sho - e m liabili ies,
o which hese companies ha e many. Medium-
sized companies had on a e age 58% o
liabili ies in he o m o sho - e m liabili ies and
la ge companies e en 64%. O cou se, ce ain
asse s could also be used o secu e sho - e m
loans, bu , e.g., in en o ies o semi- inished
p oduc s in a selec ed indus y a e pe ishable
ela i ely quickly and do no ha e a du abili y o
e en a ew mon hs.
The ag icul u al, o es y and ishing indus y
can heo e ically be conside ed neu al, as
his indus y p oduce i al p oduc s and hei
de elopmen is hus no en i ely ela ed o he
de elopmen o he whole economy, bu a he o
he clima ic condi ions ha signi ican ly a ec he
indus y. Un o una ely, he esul s o he panel
eg ession do no comple ely co espond o his
s a emen , because in e ms o he s eng h o
he impac , he de e minan s o he ex e nal
en i onmen ha e a mo e signi ican impac on
he indeb edness le el han he in e nal one.
The de elopmen o he GDP g ow h a e
had a a he nega i e impac , and his impac
was mo e p onounced o la ge companies.
This means ha companies e.g. use hei
inancing sou ces mo e in he pe iod o
economic g ow h, which is ob ious, as hei
p o i s usually g ow du ing such a pe iod and
om he poin o iew o capi al s uc u e,
i would be app op ia e o educe deb , which
could bu den companies in imes o c isis.
Mos o he examined economies did no
unde go majo luc ua ions du ing he gi en
pe iod, and despi e occasionally signi ican
p oblems, a leas hal o he examined pe iod,
he economies we e s abilized. Wi h ega d o
economic de elopmen , he nega i e impac
has i s jus i ica ion, as he e is a link o he
al eady men ioned impac o p o i abili y. The
nega i e impac o GDP is o en associa ed
wi h he nega i e impac o p o i abili y, which is
closely ela ed as co po a e p o i s usually g ow
in imes o economic boom. Companies (which
a e no p epa ing e y expensi e in es men s,
o which hey would p obably ha e o use a
deb inancing) should hink abou he u u e
de elopmen o he economy, which always
slows down a e some ime and e en, o
example, all in o ecession. Gi en his, i would
be app op ia e o educe deb in he case o
inc easing p o i abili y; o he wise, i could e en
jeopa dize he exis ence o socie y a e he
c isis. Al hough he esul s show ha companies
educed hei indeb edness du ing he pe iod
unde e iew, he opposi e is ue. In he yea -
on-yea analysis o o al indeb edness, he
indeb edness o Czech, Polish, Bulga ian and
Romanian companies, ega dless o hei size,
inc eased du ing he pe iod unde e iew and
some imes qui e signi ican ly. The indeb edness
o Hunga ian companies also inc eased,
howe e , he coe icien s o his economy
was posi i e and an inc ease was expec ed.
The only esul ha me he expec a ions o a
decline in deb can be seen in Slo ak medium-
sized companies, whe e deb ell on a e age.
Conside ing he impac o he in la ion a e,
he posi i e impac on deb le els domina es o
medium-sized companies (excluding Romanian
companies), while o la ge companies, he
impac s we e hal and hal . Di e en impac s
could be seen in Czech, Slo ak and Hunga ian
companies, which was in e es ing conside ing
ha hey a e he same economies, jus he
companies we e di ided by he size. In he case
o Polish, Slo enian and Bulga ian companies,
a posi i e impac is obse ed o bo h ypes o
companies. Mos economies, wi h he excep ion
o Romania and Hunga y, had e y low in la ion
a es, and some imes e en economies ell in o
de la ion. The posi i e impac is e y in e es ing.
The de elopmen o he in la ion a e las ed o
se e al consecu i e yea s and lende s we e
able o lend mo e unds, bu hey s ill could no
be su e ha he in la ion a e would no jump by
a ew pe cen age poin s o e a pe iod o ime
o unp edic able easons.
The impac o in e es a es was mo e
o less ul illed acco ding o he dis ibu ion
o economic de elopmen . The esul s a e
basically in line wi h he de elopmen o in e es
a es. In Poland, Hunga y and Romania, a es
we e qui e high (a ound 4% on a e age, wi h
peaks e en a ound 8%), and i was in hese
coun ies, ega dless o companies’ size,
ha he in e es a e had a nega i e impac
on deb le els. The impac was expec ed
EM_3_2021.indd 75 8.9.2021 9:57:50
76 2021, XXIV, 3
Business Adminis a ion and Managemen
as a highe in e es a e means highe deb
acquisi ion cos s. Con e sely, in he emaining
economies, in e es a es had a posi i e impac
on deb le els. In hese economies, in e es
a es we e e y low, some imes ze o, which
is a ac i e in e ms o he deb cos . The
only excep ions, Bulga ian la ge companies
a e, in which a nega i e impac is seen. The
di ec ion o he impac was e y unexpec ed,
as Bulga ia was one o he economies wi h he
lowes in e es a es du ing he pe iod unde
e iew – on a e age 0.13% and a maximum
0.55%. Howe e , in e es a es in all economies
ell sha ply du ing he pe iod unde e iew,
some imes o ze o. The e o e, i his end would
con inue, we can expec an inc ease in deb in
all economies, including Romania, Poland and
Hunga y, gi en his a iable.
Acknowledgmen s: This a icle was suppo ed
by SGS/16/2020 “In luence o selec ed in e nal
and mac oeconomic de e minan s on inancial
s uc u e o companies in selec ed coun ies o
Cen al and Eas e n Eu ope.”
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