Authors : Martina Cerníkova and Sarka Hyblerova
Abstract: For implementing partial activities, companies utilize a broad portfolio of financing resources. These resources can be analyzed from various angles. They are usually broken down into company’s equity and debt sources. Although, the decision about resource utilization is influenced by many factors, the cost of capital is the most prominent aspect that enters this process. When examining the prices of company’s equity and debt capital, it is necessary to take into account selected provisions of the tax laws which may significantly affect the cost of capital. The subject of the article is a research in the field of company debt resources. There are a number of circumstances that encourage companies to choose this method of financing. It is obvious that the motivation for the use of debt resources is different in terms of a company size. Our research was directed to explore this issue. There were investigated and evaluated the reasons for the use of debt resources of financing for the activities of variously sized companies in the Czech Republic. The research used primary data obtained by selective questionnaire survey. Using a comparative analysis, the data was processed, evaluated and interpreted. The output of the article confirms the categorization of the various factors influencing decisions about the use of debt resources with regard to the size of the surveyed companies.
Martina Cerníkova and Sarka Hyblerova, 2019. Selected Issues of Company Debt Resources Management in the Context of Tax Legislation. Journal of Engineering and Applied Sciences, 14: 10517-10521.