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THE DEVELOPMENT OF THE INDEBTEDNESS IN THE USA AND THE EUROPE IN SELECTED BRANCHES AND ITS DEPENDENCY
Abstract
This article is about the problems of the development of the indebtedness of the firms in different branches in the USA and in the Europe. The analysis of this development is important besides other things for the purpose of the identification of the average indebtedness and so-called branch standards that can be used for the process of optimizing of the capital structure. That is the topic inviting for the large discussion and very large researches which plays an important role in the sphere of the financial management. The branch standards are defined as the average indebtedness in some concrete branch which firms are trying to come near. The application problem but lies in the identification of this average indebtedness. For that reason, some analysis is realized in selected branches (Advertising, Broadcasting, Machinery, Entertainment, Food Processing, Transportation and Utility) in the Europe and in the USA for the period of 2013 – 2018 years using data from the web side of professor Damodaran, for the purpose to identify of this average indebtedness, and also for the purpose of the measurement of some possible statistical dependency of some changes in the capital structure in both areas in these branches. Because the indebtedness was measured from the accounting data this statistical analysis is important for the identification of the ability to predict some possible changes in the capital structure for the future. The hypothesis was stated that the identification of the average indebtedness and the possible dependency occur only in a few branches. This hypothesis was confirmed, and the stable average indebtedness was identified only in some branches and in the others these standards were refused, and no statistical dependency of the changes was confirmed. But on the other hand, some tendency of the relatively lesser volatility in the development of the indebtedness in most analyzed branches was confirmed.
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References14
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