Determinants of Capital Structure of Companies Listed on the Warsaw Stock Exchange. The Service Sector

Jacek Jaworski, Leszek Czerwonka


The rules shaping the capital structure are major issues relating to corporate finance. Although, there are many studies, there is no conclusive outcome which theory best explains the behavior of enterprises. The aim of this study is to verify whether company’s capital structure depends on the share of fixed assets in total assets, the size and growth of a company, its profitability, liquidity and size of a non-debt tax shield. The significance of the impact of various factors on the debt of a company was investigated using linear panel models. Data for the analysis come from the financial statements of companies listed on the Warsaw Stock Exchange, belonging to the service sector (sample size: 158), for the years 1998–2012. It was found that the share of the debt in capital structure decreases when share of the tangible assets in total assets, size and profitability of the enterprise grow. The impact of the other factors was not found. It seems that shaping the capital structure of the studied companies is best explained by the pecking order theory.


capital structure; determinants of capital structure; financing; corporate finance; pecking order theory

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Data publikacji: 2017-12-08 15:26:36
Data złożenia artykułu: 2017-04-05 16:12:09


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