Levels Of Debt To Equity Relationship In Polish Social Economy Organizations: Empirical Survey Data

Grzegorz Michalski

Abstract

In the paper are presented findings that help to derive model based on survey data about debt to equity relationship. Survey results were collected from 300 Polish nonprofit organizations that operate in social economy sector. The indicator of capital structure testifies level of financial risk. Polish nonprofit organizations are important part of general social policy in the Polish economy. They realize important aim in education, in healthcare and in many other socially important areas. Considering of nonprofit organizations efficiency there is a need of remembering the fact that from the donor perspective, important is the way the managing team uses resources of the nonprofit organization. That resources should be used in the most effective way. The nonprofit organization efficiency should be considered in the context of the risk. The one from the most important way to be out from business is the debt to equity relationship. In the paper are considered relations between debt measures and efficiency measures. That relation is also illustrated for Polish nonprofit organizations data