Publication at Faculty of Social Sciences, Faculty of Mathematics and Physics, Centre for Economic Research and Graduate Education |
2009
Abstract
The choice of capital structure by firms is a fundamental issue in financial literature. According to a recent finding, the capital structure of firms remains almost unchanged during their lives meaning that leverage ratios are significantly stable over time.
I study how substantial changes in the economy affect the stability of firm capital structure in transition countries. Specifically, I concentrate on Central and Eastern European economies that passed through transition from central planning to market economy and privatization, Russian financial crisis, and EU membership.