The dynamics of capital structure in transition economies

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dc.contributor Bank of Finland Nivorozhkin, Eugene 2014-09-22T07:59:58Z 2014-09-22T07:59:58Z 2003
dc.identifier.isbn 951-686-852-5
dc.identifier.issn 1456-4564
dc.description Ilmestynyt myös: Economics of Planning 37 ; 1 (2004).
dc.description.abstract This paper uses a dynamic unrestricted capital structure model to examine the determinants of the private companies' target financial leverage and the speed of adjustment to it in two transition economies, the Czech Republic and Bulgaria.We explicitly model the adjustment of companies' leverage to a target leverage, and this target leverage is itself explained by a set of factors.The panel data methodology combines cross-section and time-series information.The results indicate that the Bulgarian corporate credit markets were less supply constrained than those of the Czech Republic during the period under investigation.Bulgarian companies adjusted much faster to the target leverage than Czech firms.The speed of adjustment related positively to the distance between target and observed ratio for Bulgarian companies while the relationship was neutral for Czech companies.The conservative policies of Czech banks and the exposure control were likely responsible for the slower adjustment among the larger companies while the opposite were true for Bulgarian banks and companies. G30, G32, O12, O52 capital structure; leverage; dynamic adjustment model; the Czech Republic; Bulgaria
dc.format.extent 31 s.
dc.language.iso eng
dc.relation.ispartofseries BOFIT Discussion Papers
dc.subject rahoitusrakenne
dc.subject tavoitteet
dc.subject Tsekki
dc.subject Bulgaria
dc.subject mallit
dc.subject siirtymätaloudet
dc.subject SP
dc.subject Bofit-kokoelma
dc.title The dynamics of capital structure in transition economies
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-201408071998
dc.subject.jel G30
dc.subject.jel G32
dc.subject.jel O12
dc.subject.jel O52 BOFIT Discussion Papers
dc.series.year 2003
dc.series.number 2/2003
dc.series.sortingnumber 2 1.4.2003
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.description.publication Published in Economics of Planning vol 37, no 1 (2004), pp. 25-45

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