Determinants of the Capital Structure of the Companies Listed on the Warsaw Stock Exchange
The aim of this article is to analyze the determinants of capital structure for companies listed on Warsaw Stock
Exchange. On the basis of capital structure theories and previous empirical research, factors affecting capital structure of the
companies were identified. Firstly, the correlation coefficients between the determinants and debt ratios were analyzed.
Afterwards their joint impact on debt ratios was assessed with regression model estimated with generalized method of
moments estimator. The study shows that total debt ratio is positively influenced by lagged debt ratio, while negatively by
profitability, non-debt tax shield and liquidity. As far as long-term debt ratio is concerned, it is positively related to its lagged
values, while negative impact was observed for liquidity, dividends and business risk. It should be therefore concluded that
although the set of measures of capital structure determinants is similar for both total and long-term debt ratio, the magnitude
and statistical significance of influence of these factors varies widely depending on the analyzed measure of capital structure.
Keywords - Capital structure, debt ratio, pecking order theory, trade-off theory, dynamic panel data.