The role of capital market in determining capital structure: Evidence from Slovenian public and private corporations

Acta Oeconomica

Volumn 57, Issue 2, 2007, Pages 123-155

  Berk, Ales ^a  

^a UNIVERSITY OF LJUBLJANA   (Slovenia)

Author keywords

Capital market; Capital structure; Financing policy; Pecking order hypothesis; Slovenia; Trade off theory

Indexed keywords

CAPITAL MARKET; FINANCIAL POLICY; FINANCIAL SYSTEM; TRADE-OFF;

EURASIA; EUROPE; SLOVENIA; SOUTHERN EUROPE;

EID: 34347244895     PISSN: 00016373     EISSN: 15882659     Source Type: Journal    
DOI: 10.1556/AOecon.57.2007.2.1     Document Type: Article

References (52)

1. Agency of Financial Markets (2004): Report on Financial Market Development, 2004. Ljubljana, http://www.a-tvp.si/content.asp?IDm=19 [cit.: 27.2.2005].
2. Aggarwal, Raj (1990): Capital Structure Differences among Large Asian Companies. ASEAN Economic Bulletin, 7: 39-52.
3. Asquith, Paul - Mullins, W. David (1986): Equity Issues and Offering Dilution. Journal of Financial Economics, 15: 61-89.
4. Bancel, Franck - Mittoo, R. Usha (2003): The Determinants of Capital Structure Choice: A Survey of European Firms. Working Paper, American Finance Association Conference, Washington, D.C.
5. Bancel, Franck - Mittoo, R. Usha (2004): Cross-country Determinants of Capital Structure Choice: A Survey of European Firms. Financial Management, 33: 103-132.
6. Bank of Slovenia (2005): Financial Stability Report. Ljubljana.
7. Baskin, Jonathan (1989): Empirical Investigation of the Pecking Order Hypothesis. Financial Management, 18: 26-35.
8. Berk, Ales (2003): Effects of Legislation about Financial Management of Enterprises: Evidence of the Restructuring in the Slovene Economy. EFMA 2003 Helsinki Meetings. http://ssrn.com/abstract=391683 [cit.: 2.3.2005].
9. Berk, Ales (2003a): Treasury Function in Slovene Enterprises: Survey Results. In: 2nd Corporate Finance Conference Proceedings, Slovenian Institute of Auditors, Ljubljana (in Slovenian), pp. 17-44.
10. Berk, Ales (2005): Drivers of Leverage in Slovene Blue-chip Firms and Stock Performance Following Substantial Debt Increases. IB revija (in Slovenian), 49: 41-53
11. Brav, Omer (2005): How Does Access to Public Capital Market Affect Firms. Capital Structure? Job Market Paper.
12. Daniel, Kent - Titman, Sheridan - Wei, K.C. John (2001): Explaining the Cross-section of Stock Returns in Japan: Factors of Characteristics? Journal of Finance, 66: 743-766.
13. DeAngelo, Harry - Masulis, W. Ronald (1980): Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8: 3-29.
14. Dezelan, Silva (1999): Efficiency of the Slovenian Capital Market. Economic and Business Review, 2: 64-81.
15. Donaldson, Gordon (1961): Corporate Debt Capacity: A Study of Corporate Debt Policy and Determination of Corporate Debt Capacity. Graduate School of Business Administration, Division of Research, Harvard University, Boston.
16. Fama, F. Eugene - Kenneth, French R. (2002): Testing Trade-off and Pecking Order Predictions about Dividends and Debt. Review of Financial Studies, 15: 1-33.
17. Faulkender, Michael - Petersen, A. Mitchel (2006): Does the Source of Capital Affect Capital Structure? Review of Financial Studies, 19: 45-79.
18. Frydenberg, Stein (2004): Theory of Capital Structure - A Review. Working Paper, http://ssrn.com/abstract=556631 [cit.: 1.6.2005].
19. Goyal, K. Vidhan - Lehn, Kenneth - Racic, Stanko (2002): Growth Opportunities and Corporate Debt Policy: The Case of the U.S. Defence Industry. Journal of Financial Economics, 64: 35-59.
20. Harris, Milton - Raviv, Artur (1991): The Theory of Capital Structure. Journal of Finance, 46: 297-355.
21. Hendry, F. David (1995): Dynamic Econometric. Oxford: Oxford University Press Book.
22. Hennessy, A. Christopher - Whited, M. Toni (2005): Debt Dynamics. Journal of Finance, 60: 1129-1165.
23. Hovakimian, Armen - Opler, Tim - Titman, Sheridian (2001): The Debt-equity Choice. Journal of Financial and Quantitative Analysis, 36: 1-24.
24. Hovakimian, Armen - Opler, Tim - Titman, Sheridian (2001): The Capital Structure Choice: New Evidence for a Dynamic Trade-off Model. Journal of Applied Corporate Finance, 15: 24-30.
25. Jensen, C. Michael - Meckling, H. William (1976): The Theory of the Firm: Managerial Behavior, Agency Cost and Capital Structure. Journal of Financial Economics, 3: 305-360.
26. Kjellman, Anders - Hansen, Steffan (1995): Determination of Capital Structure: Theory vs. Practice. Scandinavian Journal of Management, 11: 91-102.
27. Krishnan, V. Sivarama - Moyer, R. Charles (1997): Performance, Capital Structure and Home Country: An Analysis of Asian Corporations. Global Finance Journal, 8: 129-143.
28. La Porta, Rafael - Lopez-de-Silanes, Florencio - Shleifer, Andrei - Vishny, Robert (1997): Legal Determinants of External Finance. Journal of Finance, 52: 1131-1150.
29. La Porta, Rafael - Lopez-de-Silanes, Florencio - Shleifer, Andrei - Vishny, Robert (2000): Investor Protection and Corporate Governance. Journal of Financial Economics, 58: 3-27.
30. Ljubljana Stock Exchange (2004): Annual Statistical Report 2003. Ljubljana (in Slovenian).
31. Methodology Note for Corporate and Entrepreneurial Financial Report Filing (2004). Ljubljana, AJPES (in Slovenian). http://www.ajpes.si/ docDir/LP-metodolosko∇vodilo_ZGDx.pdf [cit.:3.3.2005].
32. Modigliani, Franco - Miller, Merton, H. (1958): The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 48: 261-297.
33. Modigliani, Franco - Miller, Merton, H. (1963): Corporate Income Taxes and the Cost of Capital: A Correction. American Economic Review, 53: 433-443.
34. Miller, Merton, H. (1977): Debt and Taxes. Journal of Finance, 32: 261-275.
35. Mramor, Dusan - Groznik, Peter - Valentincic, Aljosa (1999): Present Status and Dilemmas of Business Finance in Slovenia. In: Prasnikar, Janez (ed.): Post-transition Behavior of Slovene Firms. Ljubljana: Gospodarski vestnik, pp. 221-248.
36. Mramor, Dusan - Valentincic, Aljosa (2001): When Maximizing Shareholders. Wealth is not the Only Choice. Eastern European Economics, 39: 64-93.
37. Myers, C. Steward (1977): Determinants of Corporate Borrowing. Journal of Financial Economics, 5: 147-176.
38. Myers, C. Stewart - Majluf, S. Nicholas (1984): Corporate Financing and Investment Decisions when Firms Have Information the Investors do not Have. Journal of Financial Economics, 13: 187-221.
39. Nakamura, Alice - Nakamura, Masao (1982): On the Firm's Production, Capital Structure, and Demand for Debt. Review of Economics and Statistics, 64: 384-393.
40. Nobes, Christopher - Parker, Robert (1991): Comparative International Accounting. New York: Prentice Hall.
41. Pandey, Indra Mohan (2001): Capital Structure and the Firm Characteristics: Evidence from an Emerging Market. Working Paper No. 2001-10-04, Indian Institute of Management, Ahmedabad.
42. Pinegar, J. Michael - Wilbricht, Lisa (1989): What Managers Think about Capital Structure Theory: A Survey. Financial Management, 18: 82-91.
43. Perotti, C. Enrico - Vesnaver, Luka (2004): Enterprise Finance and Investment in Listed Hungarian Firms. Journal of Comparative Economics, 32: 73-87.
44. Proposal of the Corporate Tax Law (ZDDPO-1) (in Slovenian), Ljubljana, Porocevalec Drzavnega zbora Republike Slovenije, 30 (no. 7), Ljubljana: Drzavni svet, 2004, pp. 3-63.
45. Rajan, G. Raghuram - Zingales, Luigi (1995): What do we Know about Capital Structure? Some Evidence from International Data. Journal of Finance, 50: 1421-1460.
46. Ross, A. Stephen (1977): The Determination of Financial Structure: The Incentive-Signalling Approach. The Bell Journal of Economics, 8: 23-40.
47. Shyam-Sunder, Lakshmi - Myers, C. Stewart (1999): Testing Static Trade-off Against Pecking Order Models of Capital Structure. Journal of Financial Economics, 51: 219-244.
48. The Investment Funds and Management Companies Act, Official Consolidated Text (ZISDU-UPB3). Official Gazette of the Republic of Slovenia, 26, 15.3.2005.
49. Titman, Sheridan - Wessels, Roberto (1988): The Determinants of Capital Structure Choice. Journal of Finance, 48: 1-19.
50. Toy, Norman - Stonehill, Arthur - Remmers, Lee - Wright, Richard - Beekhuisen, Theo (1974): A Comparative International Study of Growth, Profitability, and Risk as Determinants of Corporate Debt Ratios in the Manufacturing Sector. Journal of Financial and Quantitative Analysis, 9: 875-886.
51. Valsan, Talin (2005): The Determinants of Borrowing by Newly Exchange-listed Firms in Romania: When Adverse Selection Meets Cronyism. Post-Communist Economies, 17: 109.
52. Watson, Robert - Wilson, Nick (2002): Small and Medium Size Enterprise Financing: A Note on Some of the Empirical Implications of a Pecking Order. Journal of Business Finance and Accounting, 29: 557-578.