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Volume 68, Issue 2


Firm-Level and Institutional Determinants of Corporate Capital Structure in Poland: New Evidence from the Warsaw Stock Exchange

Hartwell, Christopher A.; Malinowska, Anna P.

Year: 2018   Volume: 68   Issue: 2   Pages: 120-143

Abstract: This paper discusses how well major capital structure theories incorporate firm-level and institutional factors into short-term firm financing decisions in a specific context, that of a transition economy. Using a new dataset of non-financial companies quoted on the Warsaw Stock Exchange between 2007-2015, we argue that neither the trade-off nor the pecking order theories fully explain corporate debt policies in Poland. The results of dynamic panel data modelling highlight the importance of the strength of property rights and stock market capitalisation as driving forces behind corporate financing decisions.

JEL classification: P26, O16, G32

Keywords: capital structure, pecking order theory, trade-off theory, institutions, transition economies

RePEc: https://ideas.repec.org/a/fau/fauart/v68y2018i2p120-143.html

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