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Original scientific paper

https://doi.org/10.1080/1331677X.2016.1175726

Corporate capital structure: the case of large Croatian companies

Sandra Pepur orcid id orcid.org/0000-0003-3468-9072
Marijana Ćurak
Klime Poposki


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Abstract

A growing body of research literature deals with the debt policy
decisions of companies. Although the subject of corporate capital
structure has been intriguing scientists for a number of years, very
little research has been conducted on the sample of companies in
an emerging market environment such as Croatia. The objective of
this article is to identify the main determinants of capital structure
in case of large companies in Croatia during the period from 2001–
2010. The chosen set of explanatory variables is driven by firmspecific (internal) characteristics and is additionally extended by
macroeconomic (external) features. The results obtained by dynamic
panel data methodology reveal that neither of the two competing
theories exclusively and completely explain the financing behaviour
of the analysed companies, and that inflation and development of
the banking sector are important factors that affect the corporate
leverage level.

Keywords

Corporate capital structure; internal factors; macroeconomic factors; dynamic panel analysis; Croatian companies

Hrčak ID:

171738

URI

https://hrcak.srce.hr/171738

Publication date:

22.12.2016.

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