Since 2014
Determinants of Debt-Equity Choice – Evidence from Poland
Emerging Markets Journal
View Archive Info| Field | Value | |
| Title |
Determinants of Debt-Equity Choice – Evidence from Poland
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| Creator |
Kazmierska-Jozwiak, Bogna
Marszałek, Jakub Sekuła, Paweł |
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| Subject |
capital structure, trade-off theory, pecking order theory, Poland, emerging market
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| Description |
The question of debt-equity choice has so far been widely discussed in literature. The aim of the paper is to analyse the determinants of capital structure of Polish enterprises. We analysed factors that may impact the indebtedness. This analysis fills in the gap in worldwide studies with the case of a country representing the group of „emerging markets”. The paper examines capital structure determinants of non-financial companies listed on the Warsaw Stock Exchange. We used five independent variables compatible with the up-to-date achievements in the field. The results indicate that there is an evidence of a significant negative relationship between the size of a company, its growth rate, profitability, tangibility and the level of total debt. The study shows positive relationship between growth prospects of the company and the debt level. The results of the study indicate that the pecking order theory better explains the changes in indebtedness of analysed companies than other capital structure theories. Obtained results are mostly consistent with earlier studies conducted in the Poland and with studies in Western economies.
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| Publisher |
University Library System, University of Pittsburgh
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| Contributor |
—
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| Date |
2015-11-12
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://emaj.pitt.edu/ojs/index.php/emaj/article/view/76
10.5195/emaj.2015.76 |
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| Source |
EMAJ: Emerging Markets Journal; Vol 5, No 2 (2015); 1-8
2158-8708 2159-242X |
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| Language |
eng
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| Relation |
http://emaj.pitt.edu/ojs/index.php/emaj/article/view/76/263
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| Rights |
Copyright (c) 2015 EMAJ: Emerging Markets Journal
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