THE FACTORS OF THE CAPITAL STRUCTURE IN EASTERN EUROPE Cover Image

Factorii structurii de capital in Europa de Est
THE FACTORS OF THE CAPITAL STRUCTURE IN EASTERN EUROPE

Author(s): Paul-Gabriel Miclăuş, Radu Lupu, Ştefan Nicolae Marius Ungureanu
Subject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: leverage ratio; principal components analysis; financial indicators; capital markets; Eastern Europe

Summary/Abstract: The paper proposes a test of the extent to which the financial indicators of the companies listed on the stock exchanges in Romania, Poland, Hungary and Czech Republic and representing four sectors of activity – Food, Chemistry, Energy and Farmaceuticals – influence the debt ratios of these companies. We use linear regression and principal components analysis in order to test for the influence of 12 different financial indicators in each of the years from 2002 until 2006. The results show that there is evidence in support of the influence of the proposed factors because the coefficients are significant and maintain their signs in all the years of our analysis.

  • Issue Year: XXXVI/2008
  • Issue No: 1
  • Page Range: 432-443
  • Page Count: 12
  • Language: English