The Capital Structure of Listed Companies in Poland
December 1, 1997
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Summary
This paper examines the capital structure of listed firms in Poland, using firm-level panel data to study the determinants of leverage. Polish firms had extremely low leverage levels, suggesting a growing stock market and a potential reluctance of banks to grant loans to old and risky firms. The empirical exercise finds that large, new, foreign-owned firms, and firms with strong cash positions have higher levels of leverage. Finally, shareholder concentration has a neutral or even a beneficial influence on firm leverage. The nature of ownership may be primarily responsible for this finding.
Subject: Banking, Emerging and frontier financial markets, Financial institutions, Financial markets, Labor, Securities markets, Stock markets, Stocks, Wages
Keywords: Baltics, capital structure, concentration ratio, cost of capital, debt-asset ratio, Emerging and frontier financial markets, equity, equity ratio, finance minister, investment company, leverage, Poland, ratio, Securities markets, shareholder concentration, stock market, Stock markets, Stocks, Wages, WP
Pages:
27
Volume:
1997
DOI:
Issue:
175
Series:
Working Paper No. 1997/175
Stock No:
WPIEA1751997
ISBN:
9781451976342
ISSN:
1018-5941
