Ekonomska misao i praksa, , 2026.
Izvorni znanstveni članak
https://doi.org/10.17818/EMIP/2025/47
THE ROLE OF FIRM SIZE IN SHAPING CAPITAL STRUCTURE: AN ANALYSIS OF FIRMS FROM CENTRAL AND EASTERN EUROPE
Raffaella Ljevar
; Ekonomski fakultet Sveučilišta u Rijeci
*
Ivana Tomas Žiković
orcid.org/0000-0002-9156-3479
; Ekonomski fakultet Sveučilišta u Rijeci, Katedra za financije
Sandra Pepur
; Ekonomski fakultet Sveučilišta u Splitu, Katedra za financije
*
* Dopisni autor.
Sažetak
This study examines the impact of firm-specific, macroeconomic, and institutional factors on the capital structure of firms of different sizes in selected Central and Eastern European countries. The empirical analysis applies the generalized estimating equations (GEE) method to a panel of 8,695 firms in the wholesale and retail trade sector over the period 2016–2023. The results show that profitability reduces leverage across all groups of firms, while growth and size increase the propensity to use debt. Asset structure is significant only for small firms, where tangible assets serve as key collateral, while non-debt tax shields reduce leverage. Macroeconomic and institutional factors exhibit selective effects: GDP growth and banking sector concentration significantly influence borrowing decisions of small and medium-sized firms, but are not statistically significant for large firms. The findings also highlight cross-country differences: firms in Hungary and Slovenia show lower leverage compared to Croatia, while firms in Slovakia are more indebted. Overall, the results confirm that a combination of firm-specific, macroeconomic, and institutional factors shapes capital structure, with heterogeneous effects depending on firm size. The study underscores the need for tailored financial policies for small and medium-sized firms and provides guidance for managers, financial institutions, and policymakers.
Ključne riječi
capital structure; firm-specific factors; macroeconomic factors; institutional environment; generalized estimating equations method
Hrčak ID:
337268
URI
Datum izdavanja:
30.10.2025.
Posjeta: 238 *