Preliminary communication
MODELLING THE INFLUENCE OF CASH FLOW ON INDEBTEDNESS OF CROATIAN COMPANIES USING LINEAR REGRESSION MODEL
Anita Čeh Časni
orcid.org/0000-0002-2742-8619
; Ekonomski fakultet Zagreb, Katedra za statistiku
Josipa Filić
orcid.org/0000-0002-0250-4697
; Ekonomski fakultet Zagreb, Katedra za statistiku
Abstract
The aim of this paper is to examine the statistical relationship between cash flow and corporate debt using multiple linear regression model. In addition to cash flow, the size of the enterprise was used as an additional explanatory variable in the model. Since there is a great deal of research in the relevant literature on the relationship between profit and debt, this paper uses cash flow instead of profit, which is a contribution to the existing literature. The results of the regression analysis indicate a negative impact of cash flow on indebtedness, which also confirms packing order theory. In addition, the results show a positive (albeit weaker) impact of corporate size on debt.
Keywords
multiple linear regression model; cash flow; indebtedness; firm size
Hrčak ID:
230526
URI
Publication date:
19.12.2019.
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