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The Analysis of Indebtedness of Retail Companies in the Balkan Countries

Author

Listed:
  • Bojana Vukovic
  • Suncica Milutinovic
  • Nikola Milicevic
  • Dejan Jaksic

Abstract

The aim of this paper is to determine the factors which have an impact on the structure of capital of the companies in the trade industry in the Balkan countries, during the eight years period (2010-2017). In order to realize this goal, the panel data model with fixed effects was used. The sample included 2,057 companies that operated in the retail sector in all ten Balkan countries. The obtained results showed that almost all observed variables have a statistically significant impact on the financial leverage, long-term financing, and short-term financing. According to the obtained results of the research, we can conclude that the higher profitability, liquidity, the tangibility of assets and the company’s size means a smaller indebtedness, measured by leverage. On the other hand, observed variables have different statistically significant influences depending on whether companies are financed from short-term or long-term sources. Achieving the optimal capital structure and improving the financial performance of the companies of the retail sector in the Balkan countries should be supported by investments and acquisitions based on the market standards of business applied by the developed countries of the European Union.

Suggested Citation

  • Bojana Vukovic & Suncica Milutinovic & Nikola Milicevic & Dejan Jaksic, 2020. "The Analysis of Indebtedness of Retail Companies in the Balkan Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 83-104.
    • Handle: RePEc:bas:econst:y:2020:i:3:p:83-104
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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