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The Factors of the Capital Structure in Eastern Europe

Author

Listed:
  • Paul Gabriel MICLAUS
  • Radu LUPU
  • Stefan UNGUREANU

    (Academy of Economic Studies)

Abstract

The paper proposes a test of the extent to which the financial indicators of the companies listed on the stock exchanges in Romania, Poland, Hungary and Czech Republic and representing four sectors of activity - Food, Chemistry, Energy and Farmaceuticals - influence the debt ratios of these companies. We use linear regression and principal components analysis in order to test for the influence of 12 different financial indicators in each of the years from 2002 until 2006. The results show that there is evidence in support of the influence of the proposed factors because the coefficients are significant and maintain their signs in all the years of our analysis.

Suggested Citation

  • Paul Gabriel MICLAUS & Radu LUPU & Stefan UNGUREANU, 2008. "The Factors of the Capital Structure in Eastern Europe," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(36), pages 432-443, May.
    • Handle: RePEc:aio:aucsse:v:1:y:2008:i:11:p:432-443
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    leverage ratio; principal components analysis; financial indicators; capital markets; Eastern Europe.;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G00 - Financial Economics - - General - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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