The aim of this article is to assess the long-term and short-term association between selected factors and the capital structure of Polish companies. In light of tradeoff theory and pecking order theory, the main factors associated with the capital structure of firms are identified. Subsequently, a set of factors associated with debt ratios is analysed on the basis of previous empirical studies. Due to the properties of data describing the capital structure, it is argued that Between and Within fixed-effects estimators can be used to assess the long-and short-term association of selected factors with the debt ratios of Polish companies. In both the long and short run, the capital structure of Polish companies is associated with profitability, the tangibility of assets, the non-debt tax shield, the tax rate, business risk, and liquidity. Growth opportunities, dividend payments, capital expenditures, and the financial deficit are only associated with debt ratios in the long term. In the short term, size and the industry median debt ratio play a significant role. The results of the study indicate that the direction and magnitude of the association of the studied factors with the debt ratios of Polish listed companies may differ between the long and short term.

When assessing the influence of selected factors on capital structure, the researcher has to choose the set of determinants taken into account, their measurability and the estimation method for regression model. However, as shown by this data set, the results vary significantly when the model is estimated with ordinary least squares, fixed effects or generalized method of moments. Taking into account the properties of the data describing capital structure and its determinants, generalized method of moments should be the first choice for the model in question. As generalized method of moments estimators can easily generate invalid results, it is necessary to assess the validity of the model with suitable tests. This study compares the results of parameter and standard errors estimates for the capital structure models. Lagged debt ratio and size have positive impact on debt ratio while profitability, business risk and industry median debt ratio have negative impact for companies listed in Poland.

This article analyzes the investor reaction to information on the final value of dividend payouts for companies listed on the Warsaw Stock Exchange, using the event study methodology. Our research shows that investor reaction is positive for irregular payouts and both the initiation of and the increase in payouts, while negative for the resumption and of and decreases in payouts. The magnitude of the reaction is also higher for the initiation of payouts than either the increases in, or irregular payouts. This study contributes to the literature on dividend policy by presenting results for the emerging economy of Poland. Moreover, it pays particular attention to statistical issues related to the event study methodology, i.e., the verification of assumptions behind the method of returns model estimation. It also compares investor reaction to dividend changes assessed on the basis of different measures, and underlines the dependence of the results on the choice of the parameters assumed (e.g., event window length).