The Impact of Structure of Debt Funding Sources on Liquidity of Medium-Sized Companies in the Czech Republic

  • Markéta ŠeligováEmail author
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)


The aim of this paper is to determine the impact of structure of debt funding sources on liquidity of medium-sized companies in the Czech Republic from 2006 to 2015. With the purpose to fulfill the aim, we determine the impact of structure of debt funding sources including variables such as debt equity ratio, supplier loans, long-term bank loans, short-term bank loans, other long-term liabilities, other short-term liabilities on liquidity of medium-sized companies in the Czech Republic. The relationship between structure of debt funding sources and liquidity of medium-sized companies is determined using a correlation analysis and panel regression analysis using generalized method of moments (GMM). The results confirm that there is negative impact of long-term bank loans on liquidity of medium-sized companies in the Czech Republic. The results also confirm the positive impact of other short-term liabilities on liquidity of medium-sized companies in the Czech Republic.


Debt funding sources Liquidity of companies Long-term bank loans Medium-sized companies 



This paper ensued thanks to the support of the grant SGS/7/2018 “Analysis of the influence of selected aspects on the financial structure of companies in the conditions of Central and Eastern European countries”.


  1. Anderson, R. W. (2002). Capital structure, firm liquidity and growth. Working papers-research series. National Bank of Belgium [online]. Available at: Accessed 1 Jan 2017.
  2. Cohen, J., & Cohen, P. (2014). Applied multiple regression/correlation analysis for the behavioral sciences. 2nd. Psychology Press. ISBN 0-89859-268-2.Google Scholar
  3. De Jong, A., Kabir, R., & Nguyen T. T. (2008). Capital structure around the world: The roles of firm and country-specific determinants. Journal of Banking and Finance, 32, 1954–1969.Google Scholar
  4. Haas, R., & Lelyveld, I. (2010). Internal capital markets and lending by multinational bank subsidiaries. Journal of Financial Intermediation, 19, 1–25, [online], [vid. 2017-03-01]. Available at:
  5. Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50(4), 1029–1054. ISSN 1468-0262.Google Scholar
  6. Lipson, M. L., & Mortal, S. (2009). Liquidity and capital structure. Journal of Financial Markets, 12(4), 611–644. ISSN 1386-4181.Google Scholar
  7. Miloş, M. C. (2015). Capital structure determinants. Evidence from the Romanian listed companies. Analele Universitatii ‘Eftimie Murgu’ Resita. Fascicola II. Studii Economice, 129–134. ISSN: 2344-6315.Google Scholar
  8. Myers, S. C. (2001). Capital structure. The Journal of Economic Perspectives, 15(2), 81–102.CrossRefGoogle Scholar
  9. Růčková, P. (2015). Impact of liquidity and profitability on use of debt finance sources of companies in manufacturing industry in V4 countries. Acta Academica Karviniensia. 15(3), 69–79. ISSN 1212-415X.Google Scholar
  10. Saleem, Q., & Rehman, R. U. (2011). Impacts of liquidity ratios on profitability. Interdisciplinary Journal of Research in Business, 1(7), 95–98. ISSN 2249-4588.Google Scholar
  11. Schleifer, A., & Vishny, W. R. (2001). Stock market driven acquisitions. Journal of Financial Economics [online]. Available at: Accessed 28 Feb 2017.
  12. Stulz, R. (1990). Managerial discretion and optimal financing policies. Journal of financial Economics, 26(1), 3–27. ISSN 0304-405X.Google Scholar
  13. Šarlija, N., & Harc, M. (2012). The impact of liquidity on the capital structure: A case study of Croatian firms. Business Systems Research, 3(1), 30–36.Google Scholar
  14. Trippner, P. (2013). Analysis of financial liquidity management in the enterprise and its impact on the profitability. International Conference on Finance & Banking, 494–501 (8p).Google Scholar
  15. Williamson, O. E. (1988). Corporate finance and corporate governance. Journal of Finance, 43(3), 567–591. ISSN 1540-6261.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.Department of Finance and Accounting, School of Business AdministrationSilesian UniversityKarvináCzech Republic

Personalised recommendations