Firm, country and macroeconomic determinants of capital structure: Evidence from transition economies

Joeveer, Karin-Firm, country and macroeconomic determinants of capital structure: Evidence from transition economies This study explores the significance of firm-specific, institutional, and macroeconomic factors in explaining variation in leverage using a sample of firms from nine Eastern European countries. Country-specific factors are the main determinants of variation in leverage for small unlisted companies, while firm-specific factors explain most of the variation in leverage for listed and large unlisted companies. Around half of the variation in leverage related to country factors is explained by known macroeconomic and institutional factors, while the remainder is explained by unmeasurable institutional differences. Journal of Comparative Economics 41 (1) (2013) 294-308. Management School, Queen's University Belfast, BT9 5EE, United Kingdom. (C) 2012 Association for Comparative Economic Studies Published by Elsevier Inc. All rights reserved.