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The capital structure of Polish small and medium-sized enterprises and its impact on their competitiveness

Author

Listed:
  • Robert Wolañski

    () (Faculty of Management, University of Warsaw)

Abstract

The article discusses the problem of the relationship between the capital structure and the level of competitiveness of SMEs in Poland. The objective of the article is to determine the impact capital structure has on the level of competitiveness of SMEs in Poland. The capital structure of SMEs is dominated by internal funds. Among external sources of financing, bank loans and leasing are predominant. This structure is consistent with the relevant theoretical models. The study shows no significant differences in the financing of current operations, innovation, and competitiveness improvement. The lack of relationship indicates that the capital structure of SMEs has little impact on their competitiveness. The results of the study demonstrate that all external sources of financing improve the competitiveness of SMEs, but the strength of their impact is different. The strongest impact is shown for venture capital, guarantees, and leasing; the weakest – for bank loans and the issuance of shares and bonds. A significant factor is the degree of alignment of a particular financing source with the special needs of SMEs. This significant relationship is demonstrated for all the sources most commonly used by SMEs.

Suggested Citation

  • Robert Wolañski, 2013. "The capital structure of Polish small and medium-sized enterprises and its impact on their competitiveness," Faculty of Management Working Paper Series 12013, University of Warsaw, Faculty of Management.
  • Handle: RePEc:sgm:fmuwwp:12013
    as

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    File URL: http://www.wz.uw.edu.pl/portaleFiles/5630-Faculty%20of%20M/WP/FMWPS1May2013Wolanski.pdf
    File Function: First version, 2013
    Download Restriction: no

    References listed on IDEAS

    as
    1. Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-592, July.
    3. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    : SMEs; competitiveness; capital structure;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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