How does a choice of capital affect profitability of a hotel industry in Croatia

Jure Perisic

Studenteropgave: Speciale


This study aims to see influence of capital structure on profitability on Croatian hotel firms between the years 2015 and 2016. The data sources used for this thesis were official government-required statements published by either Zagreb Stock Exchange (ZSE) or Financial Agency (FINA). Out of 26 companies with hotel interest listed on ZSE this thesis used data form 24 companies that follow the criteria presented in this paper. Linear regression model is made to test answer which theory on capital structure (MM Theory, Pecking Order Theory or Static Trade-Off theory) is the best fit for hotel industry in Croatia. Adding to that thesis also tests which of the commonly used determinates of profitability are influencing profitability in Croatia’s hotel industry. Return on Asset (ROA) served as a proxy for profitability and a depended variable. Independent variable as a proxy for capital structure was Debt to Asset Ratio (D/A). Other control variables were also used. The findings of this study is that there is no statistical significance that shows influence of capital structure on profitability in 24 observed companies with hotel interest in Croatia.

UddannelserVirksomhedsledelse, (Bachelor/kandidatuddannelse) Kandidat
Udgivelsesdato23 jan. 2019
Antal sider92
VejledereJohannes Kabderian Dreyer