Advanced

Determinants of Capital Structure: Evidence from the Emerging Market – the case of the Baltic Region

Tran, Thi Bich Cong and Sidlauskiene, Sarune (2009)
Department of Business Administration
Abstract
Firm capital structure is one of the most widely researched topics in corporate finance. However, the results are not always consistent and applicable from one market to another when explaining financing patterns. The majority of available research focuses on finding the role of firm-specific factors to leverage while ignoring macro and institutional factors. This paper examines how the capital structure of firms in the Baltic is influenced by both firm level and country level determinants. The study demonstrates that changes in leverage of firms in the Baltic is subject to both changes in firm specific characteristics, such as asset tangibility, growth opportunity, firm size and liquidity, as well as the changes in macro and institutional... (More)
Firm capital structure is one of the most widely researched topics in corporate finance. However, the results are not always consistent and applicable from one market to another when explaining financing patterns. The majority of available research focuses on finding the role of firm-specific factors to leverage while ignoring macro and institutional factors. This paper examines how the capital structure of firms in the Baltic is influenced by both firm level and country level determinants. The study demonstrates that changes in leverage of firms in the Baltic is subject to both changes in firm specific characteristics, such as asset tangibility, growth opportunity, firm size and liquidity, as well as the changes in macro and institutional factors namely bank development, stock development and financial openness to different extent. (Less)
Please use this url to cite or link to this publication:
author
Tran, Thi Bich Cong and Sidlauskiene, Sarune
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Baltic region, agency theory, pecking order, trade-off, capital structure, financing, firm level determinants, country level determinants, macro factors, institutional factors., Management of enterprises, Företagsledning, management
language
Swedish
id
1437668
date added to LUP
2009-06-03 00:00:00
date last changed
2012-04-02 17:40:54
@misc{1437668,
  abstract     = {Firm capital structure is one of the most widely researched topics in corporate finance. However, the results are not always consistent and applicable from one market to another when explaining financing patterns. The majority of available research focuses on finding the role of firm-specific factors to leverage while ignoring macro and institutional factors. This paper examines how the capital structure of firms in the Baltic is influenced by both firm level and country level determinants. The study demonstrates that changes in leverage of firms in the Baltic is subject to both changes in firm specific characteristics, such as asset tangibility, growth opportunity, firm size and liquidity, as well as the changes in macro and institutional factors namely bank development, stock development and financial openness to different extent.},
  author       = {Tran, Thi Bich Cong and Sidlauskiene, Sarune},
  keyword      = {Baltic region,agency theory,pecking order,trade-off,capital structure,financing,firm level determinants,country level determinants,macro factors,institutional factors.,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Determinants of Capital Structure: Evidence from the Emerging Market – the case of the Baltic Region},
  year         = {2009},
}