| Abstract [eng] |
KARPAVIČIENĖ, Egidija. (2010) The Impact of Loan Capital on the Lithuanian district heating Companies Investment and Growth. MBA Graduation Paper. Kaunas: Kaunas Faculty of Humanities, Vilnius University. 59 p. SUMMARY KEYWORDS: Loan capital, direct investment, growth opportunities, company value. Scientific reserches performed by Y. Spiegei (1994), R. Inderst, H. M. Müler (2003), S. Larson, A. Malberg (1990), S. C. Meyrs (2001), R. Norvaišienė, J. Stankevičienė, R. Krušinskas (2008) confirmed realationships between company capital structure, investment, its market behavior and company value. The investment of Lithaunian distric heating companies, and its market value are conditioned by the laverage of loan capital, interests and viewpoint of owners and managers and state regulation. Lithuania is tempertate zone country, so distric heating corporate activity, quality of service and heat energy price is relevant to most of the population. Object ot the research – company capital structure, direct investment, corporate growth opportunities. Aim of the research is to investigate the impact of total and long – term debt level on the enterprice investment and growth opportunities of Lithaunian distric heating companies in the period of 2004 – 2008 y., and determine the state regulatory power. Tasks of the research is to determine investment and debt levels and other activity results correlation, to determine debt level and growth opportunities and investment correlation of different ownership forms companies, to determine debt level and and growth opportunities correlation. Two hypotheses have been raised: H1 – state regulation leads to the occurrence of under –investment effect, H2 – the laverage of loan capital has a negative impact on companies growth opportunities. Absence of dependence between the level of investment ratio and total debt level ratio shows, that state regulation had no clear impact on investment and not confirms hypothesis H1. Most of Lithaunian distric heating companies, whose shareholders are local authorities, laverage of loan capital is significantly lower, then companies whose shareholders are private companies. The obtained strong possitive dependence between total debt and long – term debt level and the level of of investment ratio shows, that this companys borrowed money flows to projects of direct investment. Such relationship is a sign of ower – investment effect. The obtained strong negative dependence between medium–sized companies debt debt level and growth opportunities, confirms hypothesis H2, which states that loan capital has a negative impact on companies growth opportunities. This hypothesis was confirmed in large and small companies, the reason for this is political factors influence on large companies and relatively low loan capital level in small companies. |
