Relevance of Capital Structure Theories in the Service Sector
The aim of this study is to examine the relevance of capital structure theories in the Hungarian service sector between 2008 and 2014. The service sector stands in the centre of research, as the role of this sector is becoming more and more important. Whereas the importance of other sectors has dec...
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| Format: | Article |
| Language: | English |
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University of Miskolc
2017-08-01
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| Series: | Theory, Methodology, Practice |
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| Online Access: | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1633 |
| _version_ | 1797648449230864384 |
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| author | Judit Szemán |
| author_facet | Judit Szemán |
| author_sort | Judit Szemán |
| collection | DOAJ |
| description |
The aim of this study is to examine the relevance of capital structure theories in the Hungarian service sector between 2008 and 2014. The service sector stands in the centre of research, as the role of this sector is becoming more and more important. Whereas the importance of other sectors has decreased in the previous years and decades, the role of services shows an increasing trend in developed societies. The paper focuses on three factors. Firstly, I examine whether the classical theory is relevant, in which there is a negative linkage between profitability and capital leverage. Secondly, I examine the linkage between liquidity and capital leverage. Finally, I examine the principle of maturity matching, namely if firms in the service sector keep the golden rule to finance their non-current assets from non-current liabilities and equity.
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| first_indexed | 2024-03-11T15:32:19Z |
| format | Article |
| id | doaj.art-99ca1120639e49f39b73174db4cf20cb |
| institution | Directory Open Access Journal |
| issn | 1589-3413 2415-9883 |
| language | English |
| last_indexed | 2024-03-11T15:32:19Z |
| publishDate | 2017-08-01 |
| publisher | University of Miskolc |
| record_format | Article |
| series | Theory, Methodology, Practice |
| spelling | doaj.art-99ca1120639e49f39b73174db4cf20cb2023-10-27T04:13:21ZengUniversity of MiskolcTheory, Methodology, Practice1589-34132415-98832017-08-01130110.18096/TMP.2017.01.05Relevance of Capital Structure Theories in the Service SectorJudit Szemán0University of Miskolc The aim of this study is to examine the relevance of capital structure theories in the Hungarian service sector between 2008 and 2014. The service sector stands in the centre of research, as the role of this sector is becoming more and more important. Whereas the importance of other sectors has decreased in the previous years and decades, the role of services shows an increasing trend in developed societies. The paper focuses on three factors. Firstly, I examine whether the classical theory is relevant, in which there is a negative linkage between profitability and capital leverage. Secondly, I examine the linkage between liquidity and capital leverage. Finally, I examine the principle of maturity matching, namely if firms in the service sector keep the golden rule to finance their non-current assets from non-current liabilities and equity. https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1633corporate capital structureservicesHungary |
| spellingShingle | Judit Szemán Relevance of Capital Structure Theories in the Service Sector Theory, Methodology, Practice corporate capital structure services Hungary |
| title | Relevance of Capital Structure Theories in the Service Sector |
| title_full | Relevance of Capital Structure Theories in the Service Sector |
| title_fullStr | Relevance of Capital Structure Theories in the Service Sector |
| title_full_unstemmed | Relevance of Capital Structure Theories in the Service Sector |
| title_short | Relevance of Capital Structure Theories in the Service Sector |
| title_sort | relevance of capital structure theories in the service sector |
| topic | corporate capital structure services Hungary |
| url | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1633 |
| work_keys_str_mv | AT juditszeman relevanceofcapitalstructuretheoriesintheservicesector |