IDEAS home Printed from https://ideas.repec.org/a/mgt/youmgt/v16y2018i1p19-35.html

Corporate Capital Structure Changes during Financial Crisis: Case of Polish Companies

Author

Listed:
  • Elzbieta Wroñska-Bukalska

    (Maria Curie-Sk³odowska-University, Poland)

  • Kamil Mazurkiewicz

    (Maria Curie-Sk³odowska-University, Poland)

Abstract

The paper is addressed to the subject of corporate capital structure (equity and debt relation) for Polish companies. The aim of the paper is to identify the changes in capital structure with regard to the recent financial crisis. The research hypothesis is that the leverage would decrease during crisis period and increase after crisis. In the paper the impact of financial crisis on capital structure was analysed on four sets of data: data for all companies of the whole economy, panel data of Polish listed companies, panel data of Polish listed companies with the lowest debt ratio in 2005 (panel A) and panel data of Polish listed companies with the highest debt ratio in 2005 (panel B). The descriptive statistics and the statistical testing of the differences were employed. The multivariate regression analysis was also employed to identify how different factors affect the capital structure. The main finding of the paper is that Polish companies generally did not change their capital structure during financial crisis time. This is especially true for the panel sample and panel B, while companies from panel A increase their debt ratio despite financial crisis.

Suggested Citation

  • Elzbieta Wroñska-Bukalska & Kamil Mazurkiewicz, 2018. "Corporate Capital Structure Changes during Financial Crisis: Case of Polish Companies," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(1 (Spring), pages 19-35.
    • Handle: RePEc:mgt:youmgt:v:16:y:2018:i:1:p:19-35
    DOI: 10.26493/1854-6935.16.19-35
    as

    Download full text from publisher

    File URL: http://www.hippocampus.si/ISSN/1854-6935/16.19-35.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26493/1854-6935.16.19-35?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. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    2. Patrik Bauer, 2004. "Determinants of Capital Structure: Empirical Evidence from the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 54(1-2), pages 2-21, January.
    3. Basil Al-Najjar & Khaled Hussainey, 2011. "Revisiting the capital-structure puzzle: UK evidence," Journal of Risk Finance, Emerald Group Publishing, vol. 12(4), pages 329-338, August.
    4. 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.
    5. Kahle, Kathleen M. & Stulz, René M., 2013. "Access to capital, investment, and the financial crisis," Journal of Financial Economics, Elsevier, vol. 110(2), pages 280-299.
    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. Linnenluecke, Martina K. & Chen, Xiaoyan & Ling, Xin & Smith, Tom & Zhu, Yushu, 2017. "Research in finance: A review of influential publications and a research agenda," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 188-199.
    2. Fattouh, Bassam & Pisicoli, Beniamino & Scaramozzino, Pasquale, 2024. "Debt and financial fragility: Italian non-financial companies after the pandemic," Economic Modelling, Elsevier, vol. 131(C).
    3. Tu Nguyen & H.G. (Lily) Nguyen & Xiangkang Yin, 2015. "Corporate Governance and Corporate Financing and Investment during the 2007-2008 Financial Crisis," Financial Management, Financial Management Association International, vol. 44(1), pages 115-146, March.
    4. Feld, Lars P. & Heckemeyer, Jost H. & Overesch, Michael, 2013. "Capital structure choice and company taxation: A meta-study," Journal of Banking & Finance, Elsevier, vol. 37(8), pages 2850-2866.
    5. Chaido Dritsak, 2015. "Box Jenkins Modeling of Greek Stock Prices Data," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 740-747.
    6. Huu Manh Nguyen & Thi Huong Giang Vuong & Thi Huong Nguyen & Yang-Che Wu & Wing-Keung Wong, 2020. "Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms," Sustainability, MDPI, vol. 12(9), pages 1-25, May.
    7. Abdullah Iqbal & Ortenca Kume, 2014. "Impact of Financial Crisis on Firms’ Capital Structure in UK, France, and Germany," Multinational Finance Journal, Multinational Finance Journal, vol. 18(3-4), pages 249-280, September.
    8. César Camisón & José Antonio Clemente & Sergio Camisón-Haba, 2022. "Asset tangibility, information asymmetries and intangibles as determinants of family firms leverage," Review of Managerial Science, Springer, vol. 16(7), pages 2047-2082, October.
    9. Akbar, Saeed & Rehman, Shafiq ur & Liu, Jia & Shah, Syed Zulfiqar Ali, 2017. "Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis," Research in International Business and Finance, Elsevier, vol. 42(C), pages 559-571.
    10. González, Francisco, 2020. "Creditor rights, financial health, and corporate investment efficiency," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    11. Bukalska Elżbieta, 2019. "Testing trade-off theory and pecking order theory under managerial overconfidence," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 55(2), pages 99-117, June.
    12. Songul KAKILLI ACARAVCI, 2015. "The Determinants of Capital Structure: Evidence from the Turkish Manufacturing Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 158-171.
    13. San Martín, Pablo & Saona, Paolo, 2017. "Capital structure in the Chilean corporate sector: Revisiting the stylized facts," Research in International Business and Finance, Elsevier, vol. 40(C), pages 163-174.
    14. Mohammad Nayeem Abdullah & Emon Kalyan Chowdhury & Rahat Bari Tooheen, 2022. "Determinants of capital structure in banking sector: a Bangladesh perspective," SN Business & Economics, Springer, vol. 2(12), pages 1-19, December.
    15. Nirosha Hewa Wellalage & Stuart Locke, 2013. "Capital structure and its determinants in New Zealand firms," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(5), pages 852-866, November.
    16. Okuda, Hidenobu & Nhung, Lai Thi Phuong, 2011. "Fundraising Behaviors of Listed Companies in Vietnam: An Estimation of the Influence of Government Ownership," CEI Working Paper Series 2010-15, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    17. Khaled Hussainey & Khaled Aljifri, 2012. "Corporate governance mechanisms and capital structure in UAE," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(2), pages 145-160, September.
    18. Paulo, Alves, 2018. "Abnormal retained earnings around the world," Journal of Multinational Financial Management, Elsevier, vol. 46(C), pages 63-74.
    19. De Haas, Ralph & Guriev, Sergei & Stepanov, Alexander, 2025. "State ownership and corporate leverage around the world," Journal of Corporate Finance, Elsevier, vol. 93(C).
    20. Antonio D’Amato, 2020. "Capital structure, debt maturity, and financial crisis: empirical evidence from SMEs," Small Business Economics, Springer, vol. 55(4), pages 919-941, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    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:mgt:youmgt:v:16:y:2018:i:1:p:19-35. 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: Alen Jezovnik (email available below). General contact details of provider: https://edirc.repec.org/data/fmkupsi.html .

    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.