Capital structure choice in the Baltic countries
Capital structure choice in the Baltic countries
Author(s): Elvira Zelgalve, Irina BerzkalneSubject(s): Economy, Business Economy / Management, Financial Markets
Published by: Acadlore Publishing Services Limited
Keywords: Capital structure; trade-off theory; pecking order theory;
Summary/Abstract: The data set consists of 58 companies listed on the Baltic Stock Exchange over the period from 2005 to 2012. The study analyses the trade-off and the pecking order theories of capital structure by using regression analysis. The empirical results indicate that Baltic listed companies do not apply pecking order to their capital structure. Speed of adjustment varies for long-term debt and short-term debt. Short-term debt is adjusted more quickly than long-term debt. Speed of adjustment also depends on company size and country. Large companies and companies from Estonia adjust their capital structure more quickly than medium companies and companies from Lithuania.
Journal: The Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM)
- Issue Year: 1/2014
- Issue No: 2
- Page Range: 181-192
- Page Count: 12
- Language: English