Capital Structure Choices in Technology Firms: Empirical Results from Polish Listed Companies

Marcin Kedzior, Barbara Grabinska, Konrad Grabinski and Dorota Kedzior
Additional contact information
Marcin Kedzior: Financial Accounting Department, College of Economics, Finance and Law, Cracow University of Economics, Rakowicka 27, 31-510 Cracow, Poland
Barbara Grabinska: Finance and Financial Policy Department, College of Economics, Finance and Law, Cracow University of Economics, Rakowicka 27, 31-510 Cracow, Poland
Konrad Grabinski: Financial Accounting Department, College of Economics, Finance and Law, Cracow University of Economics, Rakowicka 27, 31-510 Cracow, Poland
Dorota Kedzior: Corporate Finance Department, College of Economics, Cracow, Finance and Law, University of Economics, Rakowicka 27, 31-510 Cracow, Poland

JRFM, 2020, vol. 13, issue 9, 1-20

Abstract: The main aim of the paper is the identification of capital structure determinants, with a special emphasis on investments in the innovativeness of Polish New Technology-Based Firms (NTBFs). Poland is a unique country in that it is an emerging market that was also promoted in 2018 to the status of a developed country. The study sample consisted of 31 companies listed in the Warsaw Stock Exchange that are classified as high-tech firms and covers the period 2014–2018. The following factors influencing the capital structure were analyzed: internal and external innovativeness and the firm’s size, liquidity, intangibility, age, profitability, and growth opportunities. The results of the research provide empirical evidence that liquidity, age, and investments in innovativeness determine capital structure, which provides an additional argument supporting the trade-off theory and the modified version of the pecking order theory. More specifically, the results suggest that companies whose process of investment in innovativeness is based on the external acquisition of technology are able to attract external financing, while the process based on internally generated innovativeness (R&D activity) deters external capital. The results are interesting for policymakers in emerging markets.

Keywords: capital structure; New Technology-Based Firms (NTBFs); internal and external innovativeness; intangibility (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/1911-8074/13/9/221/pdf (application/pdf)
https://www.mdpi.com/1911-8074/13/9/221/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:13:y:2020:i:9:p:221-:d:417252

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().