What Determines the Capital Structure of Listed Firms in Romania

Artikel

This paper examines the relative importance of four factors in the capital structure decisions of Romanian listed firms. The existing empirical research on capital structure has been largely confined to developed countries. The Romanian Financial Market has been developing at an exponential rate and dedicated research in the field is required. We used 100 firms listed in 2010 at the Bucharest Stock Exchange. The objective of this paper is to build on previous studies model all the important factors affecting capital structure decisions. We find that factors such as tangibility of assets, firm size, liquidity, and profitability have significant influences on the leverage structure chosen by firms. These results are believed to have significant implications for the theory of finance and to be of importance to the corporate treasure in choice of new financing and to the financial analyst.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: CES Working Papers ; ISSN: 2067-7693 ; Volume: 4 ; Year: 2012 ; Issue: 3a ; Pages: 523-531 ; Iasi: Alexandru Ioan Cuza University of Iasi, Centre for European Studies

Classification and Topics

• Classification: Wirtschaft ; Econometric and Statistical Methods and Methodology: General ; General Financial Markets: General (includes Measurement and Data) ; Corporate Finance and Governance: General
• Subject: profitability ; firm size ; leverage ; total assets turnover Romania

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Duca, Florinita
• Event: Veröffentlichung
• (who): Alexandru Ioan Cuza University of Iasi, Centre for European Studies
• (where): Iasi
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/198196
• Last update: 10.03.2025, 11:42 AM CET