CAPITAL STRUCTURE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE REPUBLIC OF CROATIA

Martina Harc
Additional contact information
Martina Harc: Zavod za znanstveni i umjetnički rad Hrvatske akademije znanosti i umjetnosti u Osijeku, Osijek, Hrvatska

Poslovna izvrsnost-Business Excellence, 2019, vol. 13, issue 1, 87-101

Abstract: The European Commission emphasizes that adequate access to finance is an important determinant of company development, especially for small and medium-sized enterprises that face different financing challenges. Given their economic importance, the choice of financing methods is one of the most important decisions in business operations. The aim of this paper is to analyze the impact of selected variables on the capital structure of small and medium-sized enterprises in Croatia. Clarifying the relationship between capital structure and the analyzed variables can help companies make more effective financial decisions, adapt to changing macroeconomic conditions, and promote stable growth and development. Using the estimator of the generalized method of moments in two steps, a dynamic panel model was estimated for the period from 2008 to 2017. The empirical analysis confirmed that profitability, company size, tangible assets and tax protection positively affect capital structure, while liquidity and growth have a negative statistically significant impact.

Keywords: capital structure; pecking-order theory; trade-off theory; small and medium-sized enterprises (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/file/323016 (application/pdf)
None

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:zag:busexc:v:13:y:2019:i:1:p:87-101

Access Statistics for this article

Poslovna izvrsnost-Business Excellence is currently edited by Tonći Lazibat

More articles in Poslovna izvrsnost-Business Excellence from University of Zagreb Faculty of Economics & Business Contact information at EDIRC.
Bibliographic data for series maintained by Dario Dunković ().