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Firm, country and macroeconomic determinants of capital structure: Evidence from transition economies

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  • Jõeveer, Karin

Abstract

This study explores the significance of firm-specific, institutional, and macroeconomic factors in explaining variation in leverage using a sample of firms from nine Eastern European countries. Country-specific factors are the main determinants of variation in leverage for small unlisted companies, while firm-specific factors explain most of the variation in leverage for listed and large unlisted companies. Around half of the variation in leverage related to country factors is explained by known macroeconomic and institutional factors, while the remainder is explained by unmeasurable institutional differences.

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  • Jõeveer, Karin, 2013. "Firm, country and macroeconomic determinants of capital structure: Evidence from transition economies," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 294-308.
    • Handle: RePEc:eee:jcecon:v:41:y:2013:i:1:p:294-308
    DOI: 10.1016/j.jce.2012.05.001
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    Cited by:

    1. Tkachenko, Andrey, 2022. "State-business relations and access to external financing," BOFIT Discussion Papers 10/2022, Bank of Finland, Institute for Economies in Transition.
    2. Hupka, Yuri, 2022. "Leverage and the global supply chain," Finance Research Letters, Elsevier, vol. 50(C).
    3. Fungáčová, Zuzana & Kochanova, Anna & Weill, Laurent, 2015. "Does Money Buy Credit? Firm-Level Evidence on Bribery and Bank Debt," World Development, Elsevier, vol. 68(C), pages 308-322.
    4. Kanwal Iqbal Khan & Faisal Qadeer & Mário Nuno Mata & Rui Miguel Dantas & João Xavier Rita & Jéssica Nunes Martins, 2021. "Debt Market Trends and Predictors of Specialization: An Analysis of Pakistani Corporate Sector," JRFM, MDPI, vol. 14(5), pages 1-16, May.
    5. Suborna Barua & Micol Chiesa, 2019. "Sustainable financing practices through green bonds: What affects the funding size?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1131-1147, September.
    6. Banerjee, Rajabrata & Gupta, Kartick, 2021. "Do country or firm-specific factors matter more to R&D spending in firms?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 75-95.
    7. Raja Zekri Ben Hamouda & Nessrine Hamzaoui & Faouzi Jilani, 2023. "Capital Structure Determinants: New Evidence from the MENA Region Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 144-163, January.
    8. Tanveer Ahsan & Man Wang & Muhammad Azeem Qureshi, 2016. "Mean Reverting Financial Leverage and Firm Life Cycle: Theory versus Evidence (Pakistan)," Emerging Economy Studies, International Management Institute, vol. 2(1), pages 19-26, May.
    9. Casino-Martínez, Alejandro & López-Gracia, Jose & Mestre-Barberá, Reyes, 2023. "The regulatory environment and financial constraints of private firms in the European Union," Global Finance Journal, Elsevier, vol. 55(C).
    10. repec:zbw:bofitp:2022_010 is not listed on IDEAS
    11. Tkachenko, Andrey, 2022. "State-business relations and access to external financing," BOFIT Discussion Papers 10/2022, Bank of Finland Institute for Emerging Economies (BOFIT).
    12. Iván Arribas & Emili Tortosa-Ausina & TingTing Zhu, 2021. "Optimal capital structure, model uncertainty, and European SMEs," Working Papers 2021/11, Economics Department, Universitat Jaume I, Castellón (Spain).
    13. Nicolae Stef, 2021. "Institutions and corporate financial distress in Central and Eastern Europe," European Journal of Law and Economics, Springer, vol. 52(1), pages 57-87, August.

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    More about this item

    Keywords

    Capital structure; Eastern Europe;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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