Determinants of Capital Structure in Emerging European Economies: Evidence from Slovenian Firms

Matjaž Ärnigoj and DuÅ¡an Mramor
Authors registered in the RePEc Author Service: Matjaž Črnigoj

Emerging Markets Finance and Trade, 2009, vol. 45, issue 1, 72-89

Abstract: Although empirical research has shown that some capital structure differences can be explained by modern capital structure theory in mature market economies, the forces behind capital structure decisions in emerging European economies remain a puzzle. We assume that, in these countries, the change in economic system, and therefore corporate governance, has been only gradual; other forces must be at work when firms decide on their capital structures compared to those of mature market economies. After identifying possible relevant factors in Slovenian firms, we show that throughout the period from 1999 to 2006, these factors explained the greatest part of capital structure differences. However, the explanatory power of the proposed factors is changing, which implies changing corporate governance and financial behavior of Slovenian firms during transition.

Keywords: capital structure; emerging European economies; employee-governed firms; leverage; management-governed firms (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=207376407028J27X (text/html)
Access to full text is restricted to subscribers.

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:mes:emfitr:v:45:y:2009:i:1:p:72-89

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().