International Conference on Eurasian Economies
2-4 September 2020 – Baku - AZERBAIJAN
Paper properties
Paper ID : 2465
Status : Paper published
Language : English
Topic : Sectoral Analyses
Presenter: Asst. Prof. Dr. Hakan Bal
Presentation Location : Beykent
Session : 1A Sectoral Analysis
Determinants of Capital Structure in the Construction Companies across Europe and Central Asia Region
Determinants of Capital Structure in the Construction Companies across Europe and Central Asia Region
- Asst. Prof. Dr. Hakan Bal (Istanbul Beykent University, Türkiye)
Abstract
This study examines the effects of asset tangibility, profitability, size and liquidity on capital structure (debt leverage) across the construction companies operating in in Europe and Central Asia region using the data between 1993 and 2019. The study documents that the capital structure and other financial ratios under study differ across countries, even in the same industry. Book leverage is found to be significantly negatively related to asset tangibility, profitability and liquidity in accordance with pecking order theory. In particular, fixed ratio has a negative effect on debt ratio in Russia and Romania, but no effect in other countries under study. The effect of size disappears when time dummy variables are introduced.
JEL codes: 000
Bal, Hakan (2020). "Determinants of Capital Structure in the Construction Companies across Europe and Central Asia Region" in Proceedings of International Conference of Eurasian Economies 2020, pp.23-28, Baku - AZERBAIJAN.
DOI: https://doi.org/10.36880/C12.02465
