Sources of Investment Finance in Firms in Slovakia
Mikócziová Jana
Keywords:
investment, sources of finance, pecking order theory, information asymmetry, retained earnings
Abstract:
Based on results of the EBRD-World Bank “Business Environment and Enterprise Performance
Survey” (BEEPS), the paper provides an explanation of why firms in Slovakia finance
the most of their new investments with retained earnings, followed by bank debt, trade credit
and external equity, as well as why small firms tend to use more retained earnings and less bank
debt than medium and large firms. The financing patterns of firms in Slovakia are compared to
the average financing patterns of firms in selected OECD-countries. Furthermore, measures
to stimulate corporate investments and their financing are proposed.
Fulltext download:
Sources of Investment Finance in Firms in Slovakia [PDF file] [Filesize: 710.66 KB]
|