The Capital Structure of Firms in Central and Eastern Europe
CEPR Discussion Paper No. 1392
Posted: 4 Oct 1999
Date Written: May 1996
According to more recent theories on the optimal capital structure, the availability of external financing is not always guaranteed, or it may come at different costs, depending on the methods of financing used (dept vs. equity, long-term dept vs. short-term dept, etc.) under such circumstances, firms' investment and financing decisions are interdependent. This paper studies the optimal capital structure for enterprises in transition economies and investigates the actual capital structure and its determinance in Hungary and Poland.
JEL Classification: G32, P34
Suggested Citation: Suggested Citation