Open Access
Article
SciPap-1066
Specific Financial Sources of Insolvent and Healthy Enterprises
by
Dagmar Čámská 1,* 
and Jiří Klečka 2
1 Department of Economics and Management, University of Chemistry and Technology, Technická, 5, Praha 16628, Czechia
2 Department of Economics and Management, University of Chemistry and Technology, Technická, 5, Praha 16628, Czechia
* Authors to whom correspondence should be addressed.
Abstract: This paper is focused on corporate capital structure from the point of view of specific financial sources. These specific sources consist of liabilities provided by the entities closely connected to company itself such as subsidiaries, parent companies, or individual owners. The conducted research compares financing insolvent enterprises with financing companies without any existential difficulties. Specific sources can be distinguished according to their maturity and kind of providers how they are classified in balance sheets. The comparison is made on financial statements extracted from the prepaid corporate database Albertina. The obtained data sample consists of companies that belong to three industry branches specified according to CZ-NACE classification as CZ-NACE 25, CZ-NACE 28, and CZ-NACE F. Relative frequencies show which enterprises finance more by these specific sources and which kinds of sources are used more frequently. Ratio analysis presented by descriptive statistics expresses corporate capital structure and manifests the importance of these sources on financing. Gained results confirm if the insolvent entities tend to finance more through specific sources than their healthy counterparts. These findings could have serious consequences for insolvency proceedings and their results such as creditors' satisfaction level, assets monetization tempo. It is evident that it may influence business competitiveness, economic results and overall entrepreneurial stability.
Keywords: Czech Republic, Capital Structure, Payables To Related Entities, Insolvency, Specific Indebtedness
JEL classification: G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill, G33 - Bankruptcy • Liquidation
Received: 30 April 2020 / Revised: 23 June 2020 / Accepted: 25 June 2020 / Published: 10 July 2020
