A Dynamic Analysis of Capital Structure Determinants. Empirical Results for Romanian Capital Market

The analysis of capital structure and its determinants represents an useful approach for the Romanian and foreign investors and for the companies, at the same time. The main conclusion for capital structure analysis was that Romanian listed companies sustained their assets, in this order, on equity,...

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Bibliographic Details
Published in:Theoretical and applied economics 2008-04, Vol.4(521) (4(521)), p.65-80
Main Authors: Mihaela Dragota, Andreea Semenescu
Format: Article
Language:English
Subjects:
determinants for capital structure
information asymmetry
leverage
pecking order theory
signalling theory
Online Access:Get full text
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Summary:The analysis of capital structure and its determinants represents an useful approach for the Romanian and foreign investors and for the companies, at the same time. The main conclusion for capital structure analysis was that Romanian listed companies sustained their assets, in this order, on equity, commercial debt and, finally, on financial debt. The four variables used in the regression model are significant. The pecking order theory seemed to be more appropriate for the Romanian capital market, but the signalling theory was not entirely rejected.
ISSN:1841-8678