Capital Structure Determinants: A Sectorial Analysis for the Romanian Listed Companies

Economic Computation and Economic Cybernetics Studies and Research, Vol. 42, No. 1-2, 2008, pp. 155-172

19 Pages Posted: 2 Dec 2012

See all articles by Ingrid-Mihaela Dragota

Ingrid-Mihaela Dragota

Bucharest University of Economic Studies

Victor Dragota

Bucharest University of Economic Studies

Laura Obreja

affiliation not provided to SSRN

Andreea Semenescu

affiliation not provided to SSRN

Date Written: 2008

Abstract

This study analyses the differences in financing policies for the Romanian listed companies taking into account the economic sectors. They are financing their assets, in this order, on equity, commercial debt and, finally, on financial debt. However, there are some differences between sectors and between book and market values. Concerning the determinants of capital structure, analysed through OLS regression, the four variables used in the model (tangible assets, size, profitability and market-to-book ratio) are significant. Moreover, the relationship between capital structure and the firm profitability for the Romanian listed shares for the period 1997-2005 was analysed through Granger (1969). Capital structure does not Granger cause financial returns and the hypothesis that financial returns does not Granger cause capital structure can not be rejected.

Keywords: capital structure, performances, industry analysis, signalling theory, pecking order theory, Romania

JEL Classification: G32

Suggested Citation

Dragota, Ingrid-Mihaela and Dragota, Victor and Obreja, Laura and Semenescu, Andreea, Capital Structure Determinants: A Sectorial Analysis for the Romanian Listed Companies (2008). Economic Computation and Economic Cybernetics Studies and Research, Vol. 42, No. 1-2, 2008, pp. 155-172, Available at SSRN: https://ssrn.com/abstract=2183666

Ingrid-Mihaela Dragota (Contact Author)

Bucharest University of Economic Studies ( email )

5-7 Mihail Moxa Street
Bucharest
Romania

Victor Dragota

Bucharest University of Economic Studies ( email )

Piața Romană 6
Bucharest, 010374
Romania

Laura Obreja

affiliation not provided to SSRN ( email )

Andreea Semenescu

affiliation not provided to SSRN ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
307
Abstract Views
1,668
Rank
187,955
PlumX Metrics