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Determinants of the capital structure of the Bulgarian firms

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  • Dimiter Rafailov

Abstract

By means of an analysis of the basic theoretical models from the standpoint of their relevance to the economic situation in Bulgaria, the factors of importance are estimated, determining the correlation of debt against assets of the Bulgarian companies. The empiric estimation is made on the basis of an investigation encompassing the public companies for the period 1998-2000. The results of the classic regressive analysis applied, as well as the panel analysis, evidence the presence of market imperfections found in the basis of the indebtedness of the companies. What is specific about the Bulgarian firms is the great importance of the asymmetric information, while the remaining imperfections - taxation, crisis and intermediary expenses are of secondary importance.

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  • Dimiter Rafailov, 2003. "Determinants of the capital structure of the Bulgarian firms," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 47-65.
    • Handle: RePEc:bas:econth:y:2003:i:1:p:47-65
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    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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