IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/463.html

The Determinants of Capital Structure: Evidence from Albania

Author

Listed:
  • Anila Çekrezi

Abstract

This paper attempts to explore the impact of firm specific factors and macroeconomic factors on capital structure decision for a sample of 53 non- listed firms, which operate in Albania, over the period 2008-2011.In this paper is used total debt to total assets (TDTA) as dependent variable and nine independent variables: tangibility (TANG), liquidity (LIQ), profitability (ROA , size (SIZE),business risk(RISK) , non-debt tax shields (NDTSH),GDP growth rate(GDP), inflation rate (INF) and interest rate (INT). The investigation uses cross-sectional time series data which are collected from the Balance Sheet Annual Reports, the official document delivered to the State Tax Office. This study found that tangibility (the ratio of fixed assets to total assets), liquidity (the ratio of current assets to current liabilities), profitability (the ratio of earnings after taxes to total assets), size (natural logarithm of total assets) and risk (the ratio of standard deviation of sales to average value of sales) have a significant impact on leverage. Also it is found that NDTSH has a negative but not significant relation with leverage and GDP growth rate, inflation and interest rate have a positive but not a significant relation with leverage.

Suggested Citation

  • Anila Çekrezi, 2013. "The Determinants of Capital Structure: Evidence from Albania," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 2, October.
    • Handle: RePEc:bjz:ajisjr:463
    DOI: 10.5901/ajis.2013.v2n9p370
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/861
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/861/892
    Download Restriction: no
    File URL: https://libkey.io/10.5901/ajis.2013.v2n9p370?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xu, Jin, 2012. "Profitability and capital structure: Evidence from import penetration," Journal of Financial Economics, Elsevier, vol. 106(2), pages 427-446.
    2. Myers, Stewart C, 1984. "The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-592, July.
    3. Frank, Murray Z. & Goyal, Vidhan K., 2003. "Testing the pecking order theory of capital structure," Journal of Financial Economics, Elsevier, vol. 67(2), pages 217-248, February.
    4. repec:bla:jfinan:v:43:y:1988:i:1:p:1-19 is not listed on IDEAS
    5. DeAngelo, Harry & Masulis, Ronald W., 1980. "Optimal capital structure under corporate and personal taxation," Journal of Financial Economics, Elsevier, vol. 8(1), pages 3-29, March.
    6. Rajan, Raghuram G & Zingales, Luigi, 1995. "What Do We Know about Capital Structure? Some Evidence from International Data," Journal of Finance, American Finance Association, vol. 50(5), pages 1421-1460, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guilherme Resende Oliveira & Benjamin Miranda Tabak & José Guilherme de Lara Resende & Daniel Oliveira Cajueiro, 2012. "Determinantes da Estrutura de Capital das Empresas Brasileiras: uma abordagem em regressão quantílica," Working Papers Series 272, Central Bank of Brazil, Research Department.
    2. Clemente-Almendros, José A. & Sogorb-Mira, Francisco, 2018. "Costs of debt, tax benefits and a new measure of non-debt tax shields: examining debt conservatism in Spanish listed firms," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 21(2), pages 162-175.
    3. Mai, Nhat Chi, 2012. "Market timing, taxes and capital structure: evidence from Vietnam," OSF Preprints t3mvs, Center for Open Science.
    4. Murray Z. Frank & Vidhan K. Goyal, 2009. "Capital Structure Decisions: Which Factors Are Reliably Important?," Financial Management, Financial Management Association International, vol. 38(1), pages 1-37, March.
    5. Alessandro Zeli & Matilde Bini, 2025. "Corporate Financing in the Deleveraging Era," Schmalenbach Journal of Business Research, Springer, vol. 77(4), pages 1039-1065, December.
    6. Vodwal, Sandeep & Bansal, Vishakha & Sinha, Pankaj, 2019. "Impact of Financial Crisis on Determinants of Capital Structure of Indian Non-financial Firms: Estimating Dynamic Panel Data Model using Two-Step System GMM," MPRA Paper 95482, University Library of Munich, Germany.
    7. Shoaib Ali & Attiya Yasmin Javid, 2015. "Relationship between Credit Rating, Capital Structure and Earning Management Behaviour: Evidence from Pakistani Listed Firms," PIDE-Working Papers 2015:121, Pakistan Institute of Development Economics.
    8. Vivien Beattie & Alan Goodacre & Sarah Jane Thomson, 2006. "Corporate Financing Decisions: UK Survey Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(9‐10), pages 1402-1434, November.
    9. Quratulain Zafar & Winai Wongsurawat & David Camino, 2019. "The determinants of leverage decisions: Evidence from Asian emerging markets," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1598836-159, January.
    10. Lindner, Thomas & Puck, Jonas & Stocco, Giulia, 2023. "Asymmetric risk perception and firm financing in the institutional envelope," International Business Review, Elsevier, vol. 32(3).
    11. Cai, Jie & Zhang, Zhe, 2011. "Leverage change, debt overhang, and stock prices," Journal of Corporate Finance, Elsevier, vol. 17(3), pages 391-402, June.
    12. Julia KORALUN-BEREŹNICKA & Dorota CIOŁEK, 2018. "Industry and Size Effect in Profitability-Capital Structure Relation: Empirical Evidence from Poland," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 93-107, December.
    13. Dang, Viet Anh, 2013. "An empirical analysis of zero-leverage firms: New evidence from the UK," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 189-202.
    14. Luís Pacheco & Fernando Tavares, 2017. "Capital structure determinants of hospitality sector SMEs," Tourism Economics, , vol. 23(1), pages 113-132, February.
    15. Viet Anh Dang, 2013. "Testing capital structure theories using error correction models: evidence from the UK, France and Germany," Applied Economics, Taylor & Francis Journals, vol. 45(2), pages 171-190, January.
    16. Stanislas T. M. D. C. Agossadou, 2024. "Corporate Income Tax (CIT) and Capital [L'impôt sur les sociétés (IS) et le capital]," Post-Print hal-04509016, HAL.
    17. José López-Gracia & Francisco Sogorb-Mira, 2008. "Testing trade-off and pecking order theories financing SMEs," Small Business Economics, Springer, vol. 31(2), pages 117-136, August.
    18. Rebel A. Cole, 2013. "What Do We Know about the Capital Structure of Privately Held US Firms? Evidence from the Surveys of Small Business Finance," Financial Management, Financial Management Association International, vol. 42(4), pages 777-813, December.
    19. Qian, Zhenjie & Xi, Dan & Xu, Jia & Zhou, Lingrui, 2026. "Deleveraging driven by profitability improvement: Evidence from China’s business tax to value-added tax transition," Journal of Empirical Finance, Elsevier, vol. 85(C).
    20. Chi-Hsiou D. Hung & Anurag Banerjee & Qingrui Meng, 2017. "Corporate financing and anticipated credit rating changes," Review of Quantitative Finance and Accounting, Springer, vol. 48(4), pages 893-915, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjz:ajisjr:463. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.