Determinants of Capital Structure: An Empirical Study of Companies From Selected Post-Transition Economies

Arsov, Sasho; Naumoski, Andreja

doi:10.18045/zbefri.2016.1.119

Cited by 32 publications

(50 citation statements)

References 51 publications

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“…Therefore, successful change management is the key to any organization that wants to survive and succeed in today's highly competitive environment. Organizations are dealing with various kinds of changes, for example changes in market conditions, workforce demographics and diversity, technological innovations, an increased focus on customer and quality, shortage of talent and economical changes (Noe, 2002;Božić & Rajh, 2016;Arsov & Naumoski, 2016;Misankova, 2016;Rajnoha & Dobrovič, 2011). When managing these changes, organizations face obstacles regarding their smooth implementation.…”

Section: Introductionmentioning

confidence: 99%

Examination of Factors Affecting the Implementation of Organizational Changes

Dobrovič¹,

Timková²

2017

JOC

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Organizational changes have a major impact on the competitiveness, growth, efficiency, and survival of any organization. This article deals with the issue of an organizational change and its management. The main objective of the research is to verify the existence of a statistically significant relationship between selected factors and the success of organizational changes in Slovak companies. In the short theoretical introduction, the article explains basic aspects of change management. The main part of the article deals with the analysis of variables affecting the outcome of changes taking place in companies. The empirical survey was carried out using the questionnaire method. The questionnaire was distributed to employees from different types of companies where the changes took place. The survey sample consists of 287 respondents. To test the statistical hypotheses, we used the Spearman's correlation coefficient. The test hypotheses were processed through the program Gretl. Based on the tested relationship between the variables, a significant relationship between the variables was found -the time needed to prepare and implement the change and the success of the change. Other variables also showed an impact on the final outcome of the change. It has been shown that the process of planning changes, checking upon changes, and the time needed to implement changes have an important role and a major effect on the ultimate success or failure of change in a company.

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Section: Introductionmentioning

confidence: 99%

Examination of Factors Affecting the Implementation of Organizational Changes

Dobrovič¹,

Timková²

2017

JOC

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“…However, in a more complex view of the model, firms with more investments maintain low-risk debt capacity and issue less debt (Fama & French, 2002). Some studies indicated that leverage increases with growth opportunities (Booth et al, 2001;Arsov & Naumoski, 2016;Burucu & Öndeş, 2016;Erol, Aytekin and Abdioğlu, 2016). However, Titman & Wessel (1988), Karadeniz et al (2009), Cortez & Susanto (2012), Liang et al (2014), and Cevheroglu-Acar (2018) show an insignificant relation between leverage and growth opportunities.…”

Section: Growth Opportunitiesmentioning

confidence: 99%

“…According to this theory, firms tend to issue shares instead of debt when prices are high, and tend to repurchase equity when prices are low. Baker and Wurgler (2002) find evidence that leverage increases (decreases) when the market value is low (high). Corporate leverage is negatively related to the historical market valuations.…”

Section: Introductionmentioning

confidence: 96%

Türkiye’de Hizmet Firmalarının Finansal Kaldıracını Etkileyen Faktörler Üzerine Ampirik Bir Araştırma

Bilen

Kalash

2020

İstanbul Gelişim Üniversitesi Sosyal Bilimler Dergisi

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This research investigates the factors affecting the financial leverage of 52 service firms listed on Istanbul Stock Exchange during the period from 2008 to 2017. Using Ordinary Least Squares (OLS) regressions, our results indicated that, as assumed by the pecking order model, leverage increases with investment opportunities and decreases with profitability, liquidity and tangibility. Furthermore, we find that larger firms tend to have high leverage. However, contradicting the trade-off model, non-debt tax shields are positively and significantly related to leverage.

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“…(2001) provided empirical evidence that capital structure theory is not portable across borders due to different institutional structures and other country-specific factors. Črnigoj & Mramor (2009) provide a detailed insight with respect to capital structure of Slovenian firms, as do Arsov & Naumoski (2016) for Macedonian firms, and Hernadi & Ormos (2012) for Central and Eastern European SMEs. Research proves that similar factors influence capital choice in developed and emerging markets (Booth, Aivazian, and Demirguc-Kunt 2001).…”

Section: Literature Reviewmentioning

confidence: 99%

Analyzing Capital Structure across Industries: Evidence from Croatia

Karanović¹,

Nikolić²,

Karanović

2019

Zagreb International Review of Economics and Business

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Capital structure refers to the delicate balance between equity and debt that a company uses to finance its assets. It is typically expressed as a debt-to-equity or debt-to-capital ratio, with the components usually located on the right side of the company’s balance sheet. Capital structure can exert great influence on the company’s risk profile and ability to leverage its operations. For this reason, the authors conducted an investigation of the capital structure of 16 joint stock companies listed on the Zagreb Stock Exchange comprising CROBEX, the equity index of Croatia for a three-year period starting in 2015 and ending in 2017. The study demonstrates that many CROBEX-listed companies are very risk averse and choose to remain debt-free. Some are, however, starting to discover the potential offered by financial leverage and have slowly started adjusting their capital structure. In conclusion, capital structure is slowly becoming an issue worthy of discussion on the corporate agendas in Croatia.

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Determinants of Capital Structure: An Empirical Study of Companies From Selected Post-Transition Economies

Abstract: The goal of this paper is to examine if there are any determinants that systematically influence the capital structure of the companies in the Balkan

Cited by 32 publications

References 51 publications

Examination of Factors Affecting the Implementation of Organizational Changes

Examination of Factors Affecting the Implementation of Organizational Changes

Türkiye’de Hizmet Firmalarının Finansal Kaldıracını Etkileyen Faktörler Üzerine Ampirik Bir Araştırma

Analyzing Capital Structure across Industries: Evidence from Croatia

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