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The Determinants of the Financing Decision of Listed Companies on the Bucharest Stock Exchange

Author

Listed:
  • Vasile ILIE

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Florina-Adriana STANICA

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Nicoleta BARBUTA-MISU

    (Dunarea de Jos University of Galati, Romania)

Abstract

The previous literature attempted to provide explanations for the differences identified in the capital structure of companies, with a set of more or less practically applicable theories. This paper aims to capture the influence of the main factors identified in the relevant literature on the capital structure of a sample of listed companies on the main market of the Bucharest Stock Exchange (BVB) and, in particular, to validate or invalidate some of the theories that attempted to explain the differences in the capital structure in the literature. The results show that the capital structure of the Romanian listed companies is positively correlated with the existence of growth opportunities and negatively with the profitability, liquidity, asset tangibility and volatility coefficient.

Suggested Citation

  • Vasile ILIE & Florina-Adriana STANICA & Nicoleta BARBUTA-MISU, 2019. "The Determinants of the Financing Decision of Listed Companies on the Bucharest Stock Exchange," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 48-62.
    • Handle: RePEc:ddj:fseeai:y:2019:i:2:p:48-62
    DOI: https://doi.org/10.35219/eai1584040931
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    References listed on IDEAS

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