Determinants of capital structure of enterprises – evidence from Poland

Katarzyna Prędkiewicz , Paweł Prędkiewicz


The aim of the paper was to examine the factors influencing capital structure of enterprises based on the trade-off and pecking order theories. We tested whether company size, age, tangibility of assets, non-interest tax shield, profitability and opportunities for growth have any impact on debt ratio, which is measured as the proportion of short and long-term debt relative to total assets. The study was conducted on the basis of 3441 companies operating in Poland, for the years 2010 to 2013, thereby giving more than 10 thousand company-years of observation. The inference was obtained using the OLS method. We found that age, profitability, non-debt tax shield, and size are negatively related to debt ratio, whereas the proportion of tangible assets within total assets and the number of shareholders are both factors that increase the intensity of employing debt in financing.
Author Katarzyna Prędkiewicz (EaE / IES / KZFP)
Katarzyna Prędkiewicz,,
- Katedra Zarządzania Finansami Przedsiębiorstwa
, Paweł Prędkiewicz (ES / DF)
Paweł Prędkiewicz,,
- Department of Finance
Publication size in sheets0.5
Book Čulik Miroslav (eds.): Financial Management of Firms and Financial Institutions: 10th International Scientific Conference Proceedings. Part 3, 2015, VSB - Technical University of Ostrava, ISBN 9788024838656, 367 p.
Keywords in Englishcapital structure, debt ratios, pecking order theory, trade-off theory
Languageen angielski
Score (nominal)15
ScoreMinisterial score = 15.0, 02-07-2019, BookChapterMatConfByConferenceseries
Ministerial score (2013-2016) = 15.0, 02-07-2019, BookChapterMatConfByConferenceseries
Publication indicators WoS Citations = 1
Citation count*3 (2020-09-27)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.