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Firm specific determinants of capital structure in European advanced developing countries

Author

Listed:
  • Maciej Stradomski

    (Poznań University of Economics and Business, Department of Investment and Capital Markets)

  • Katarzyna Schmidt

    (Poznań University of Economics and Business, Department of Investment and Capital Markets)

Abstract

The problem of the determinants of the firm financing structure has been researched in literature for years. Still, there is a lot of ambiguity and difference of opinion in that area. Consequently, in this study the authors have decided to analyse firm specific determinants of capital structure in selected advanced developing economies. The research was conducted on companies from four European markets: Polish, Czech, Greek, and Hungarian. The analysed data covered the period 2009–2017. The applied research method was panel data regression with fixed effects. The outcome shows that company decisions concerning the source of financing from the Greek and Hungarian markets are better explained by the pecking order theory, while in the case of the Czech market the trade-off theory works better. For the Polish market neither the pecking order theory nor the trade-off theory has been proved convincingly.

Suggested Citation

  • Maciej Stradomski & Katarzyna Schmidt, 2020. "Firm specific determinants of capital structure in European advanced developing countries," Bank i Kredyt, Narodowy Bank Polski, vol. 51(3), pages 263-292.
    • Handle: RePEc:nbp:nbpbik:v:51:y:2020:i:3:p:263-292
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    References listed on IDEAS

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    Cited by:

    1. Mieczysław Kowerski, 2022. "A number of capital structure models presented even in prominent papers are estimated with incorrect estimators," Bank i Kredyt, Narodowy Bank Polski, vol. 53(5), pages 475-496.

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    More about this item

    Keywords

    financing structure; indebtedness; pecking order theory; trade-off theory;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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