Original scientific paper
https://doi.org/10.18045/zbefri.2018.1.55
The dynamic model of partial adjustment of the capital structure. Meta-analysis and a case of Polish enterprises
Natalia Nehrebecka
orcid.org/0000-0003-3870-7231
; Faculty of Economic Sciences, Warsaw University, Warsaw, Poland
Aneta Dzik-Walczak
orcid.org/0000-0002-0192-0226
; Faculty of Economic Sciences, Warsaw University, Warsaw, Poland
Abstract
The impact of company characteristics on bank debt financing has always been a field of conflicts among economists (e.g. trade-oJ theory vs. pecking order theory). The aim of this study is to investigate the adjustment speed of the capital structure to the optimal one. It has been verified how both company characteristics and macroeconomic factors aJect adjustments toward a leverage target. This study provides a systematic analysis of the empirical literature on the leverage by conducting a meta-analysis. In particular, the problem of publication selection bias is discussed. Our results indicate that there is an evidence of such publication selection. For Polish case, we have found that the estimation of coeffcient for lagged leverage is equal to 58.45%. It means that companies adjust its current level of leverage to the optimal value at a rate of 41.55% per year, so they need 1.3 years to reduce half of the distance to the optimum leverage. In comparison with results obtained by other researchers, it is relatively high rate of adjustment.
Keywords
capital structure; leverage; partial adjustment; Polish companies; publication selection bias
Hrčak ID:
202059
URI
Publication date:
26.6.2018.
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