Financing Choices of Firms in EU Accession Countries
AbstractThe paper presents evidence of actual and target capital structures of firms in five EU accession countries of Central and Eastern Europe and the former Soviet Union (Bulgaria, the Czech Republic, Poland, Romania and Estonia). We consider the financial constraints of private companies and compare the level of indebtedness and the determinants firms’ choices of capital structure in selected EU accession countries and EU countries. A dynamic nonlinear adjustment model is adopted to explicitly model the adjustment of a firm’s leverage to a target leverage.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 33.
Length: 36 pages
Date of creation: 22 Apr 2004
Date of revision:
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More information through EDIRC
EU; transition countries; capital structure; leverage; dynamic adjustment model;
Find related papers by JEL classification:
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-04-25 (Accounting & Auditing)
- NEP-ALL-2004-04-25 (All new papers)
- NEP-CFN-2004-04-25 (Corporate Finance)
- NEP-MFD-2004-04-25 (Microfinance)
- NEP-TRA-2004-04-25 (Transition Economics)
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