View More View Less
  • 1 Budapest University of Technology and Economics Department of Finance Magyar tudósok krt. 2 H-1117 Budapest Hungary
Restricted access

Purchase article

USD  $25.00

1 year subscription (Individual Only)

USD  $700.00

We analyze the determinants of capital structure and its choice by small and medium-sized enterprises in Central and Eastern Europe from 2002 to 2007. We test the relevance of the three main theories: the Static Trade-off Theory, the Pecking Order Theory, and the Agency Theory, which have been derived primarily for developed markets, because our knowledge on their validity for emerging European countries is limited. We confirm the positive impact of size and asset tangibility on the leverage, while rejecting both the positive impact of profitability and tax, as well as the negative impact of business risk and non-debt tax shields. We report that SMEs behave homogeneously, and the relevant capital structure determinants show remarkable steadiness. Our results show a special time varying behaviour, in which the relevant determinants become stronger, while most of the country-specific factors present weakening effects. We argue that firms of the CEE countries remarkably converged their financial decision-making procedure to that of developed countries through the investigated period. The relevance of the Trade-off Theory is weak, as firms respect a one-sided upper threshold rather than converging to a fixed target on both sides, while they are not indifferent to the hierarchy of financing alternatives.

  • Bancel, F. — Mittoo, U. R. (2004): Cross-country Determinants of Capital Structure Choice: A Survey of European Firms. Financial Management, 33(4): 103–132.

    Mittoo U. R. , 'Cross-country Determinants of Capital Structure Choice: A Survey of European Firms ' (2004 ) 33 Financial Management : 103 -132.

    • Search Google Scholar
  • Barclay, M. J. — Smith, C. W. Jr. (1995): The Maturity Structure of Corporate Debt. Journal of Finance, 50(2): 609–631.

    Smith C. W. , 'The Maturity Structure of Corporate Debt ' (1995 ) 50 Journal of Finance : 609 -631.

    • Search Google Scholar
  • Bartholdy, J. — Mateus, C. (2008): Taxes and Corporate Debt Policy: Evidence for Unlisted Firms of Sixteen European Countries. Social Science Research Network Working Paper.

  • Beck, T. — Demirguc-Kunt, A. — Peria, M. S. M. (2009): Bank Financing for SMEs: Evidence across Countries and Bank-ownership Types. CentER Discussion Paper, No. 2009-71.

  • Berger, A. N. — Udell, G. F. (1998): The Economics of Small Business Finance: The Role of Private Equity and Debt Markets in the Finance Growth Cycle. Journal of Banking and Finance, 22(6–8): 613–673.

    Udell G. F. , 'The Economics of Small Business Finance: The Role of Private Equity and Debt Markets in the Finance Growth Cycle ' (1998 ) 22 Journal of Banking and Finance : 613 -673.

    • Search Google Scholar
  • Berggren, B. — Olofsson, C. — Silver, L. (2000): Control Aversion and the Search for External Financing in Swedish SMEs. Small Business Economics, 15(3): 233–242.

    Silver L. , 'Control Aversion and the Search for External Financing in Swedish SMEs ' (2000 ) 15 Small Business Economics : 233 -242.

    • Search Google Scholar
  • Booth, L. — Aivazian, V. — Demirguc-Kunt, A. — Maksimovic, V. (2001): Capital Structures in Developing Countries. Journal of Finance, 56(1): 87–130.

    Maksimovic V. , 'Capital Structures in Developing Countries ' (2001 ) 56 Journal of Finance : 87 -130.

    • Search Google Scholar
  • Brounen, D. — de Jong, A. — Koedijk, K. (2006): Capital Structure Policies in Europe: Survey Evidence. Journal of Banking and Finance, 30(5): 1409–1442.

    Koedijk K. , 'Capital Structure Policies in Europe: Survey Evidence ' (2006 ) 30 Journal of Banking and Finance : 1409 -1442.

    • Search Google Scholar
  • Chen, J. J. (2004): Determinants of Capital Structure of Chinese-listed Companies. Journal of Business Research, 57(12): 1341–1351.

    Chen J. J. , 'Determinants of Capital Structure of Chinese-listed Companies ' (2004 ) 57 Journal of Business Research : 1341 -1351.

    • Search Google Scholar
  • Chittenden, F. — Hall, G. — Hutchinson, P. (1996): Small Firm Growth, Access to Capital Markets and Financial Structure: Review of Issues and an Empirical Investigation. Small Business Economics, 8(1): 59–67.

    Hutchinson P. , 'Small Firm Growth, Access to Capital Markets and Financial Structure: Review of Issues and an Empirical Investigation ' (1996 ) 8 Small Business Economics : 59 -67.

    • Search Google Scholar
  • Crnigoj, M. — Mramor, D. (2009): Determinants of Capital Structure in Emerging European Economies: Evidence from Slovenian Firms. Emerging Markets Finance and Trade, 45(1): 72–89.

    Mramor D. , 'Determinants of Capital Structure in Emerging European Economies: Evidence from Slovenian Firms ' (2009 ) 45 Emerging Markets Finance and Trade : 72 -89.

    • Search Google Scholar
  • De Angelo, H. — Masulis, R. W. (1980): Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8(1): 3–29.

    Masulis R. W. , 'Optimal Capital Structure under Corporate and Personal Taxation ' (1980 ) 8 Journal of Financial Economics : 3 -29.

    • Search Google Scholar
  • De Haan, L. — Hinloopen, J. (2003): Preference Hierarchies for Internal Finance, Bank Loans, Bond and Share Issues: Evidence for Dutch Firms. Journal of Empirical Finance, 10(5): 661–681.

    Hinloopen J. , 'Preference Hierarchies for Internal Finance, Bank Loans, Bond and Share Issues: Evidence for Dutch Firms ' (2003 ) 10 Journal of Empirical Finance : 661 -681.

    • Search Google Scholar
  • Delcoure, N. (2007): The Determinants of Capital Structure in Transitional Economies. International Review of Economics and Finance, 16(3): 400–415.

    Delcoure N. , 'The Determinants of Capital Structure in Transitional Economies ' (2007 ) 16 International Review of Economics and Finance : 400 -415.

    • Search Google Scholar
  • Demirguc-Kunt, A. — Maksimovic, V. (1996): Institutions, Financial Markets and Firm Debt Maturity. The World Bank Development Research Group. Policy Research Working Paper Series, No. 1686.

  • Desai, M. A. — Gompers, P. A. — Lerner, J. (2003): Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe. NBER Working Paper, No. W10165.

  • Fama, E. F. — French, K. R. (2002): Testing Trade-off and Pecking Order Predictions about Dividends and Debt. Review of Financial Studies, 15(1): 1–33.

    French K. R. , 'Testing Trade-off and Pecking Order Predictions about Dividends and Debt ' (2002 ) 15 Review of Financial Studies : 1 -33.

    • Search Google Scholar
  • Fama, E. F. — French, K. R. (2005): Financing Decisions: Who Issues Stock? Journal of Financial Economics, 73(3): 549–582.

    French K. R. , 'Financing Decisions: Who Issues Stock? ' (2005 ) 73 Journal of Financial Economics : 549 -582.

    • Search Google Scholar
  • Fan, D. K. K. — So, R. W. (2004): What Managers Think of Capital Structure: the Evidence from Hong Kong. Journal of Asian Economics, 15(4): 817–830.

    So R. W. , 'What Managers Think of Capital Structure: the Evidence from Hong Kong ' (2004 ) 15 Journal of Asian Economics : 817 -830.

    • Search Google Scholar
  • Frank, M. Z. — Goyal, V. K. (2003): Testing the Pecking Order Theory of Capital Structure. Journal of Financial Economics, 67(2): 217–248.

    Goyal V. K. , 'Testing the Pecking Order Theory of Capital Structure ' (2003 ) 67 Journal of Financial Economics : 217 -248.

    • Search Google Scholar
  • Friend, I. — Lang, L. H. P. (1988): An Empirical Test of the Impact of Managerial Self-interest on Corporate Capital Structure. Journal of Finance, 43(2): 271–281.

    Lang L. H. P. , 'An Empirical Test of the Impact of Managerial Self-interest on Corporate Capital Structure ' (1988 ) 43 Journal of Finance : 271 -281.

    • Search Google Scholar
  • Gaud, P. — Hoesli, M. — Bender, A. (2007): Debt-equity Choice in Europe. International Review of Financial Analysis, 16(3): 201–222.

    Bender A. , 'Debt-equity Choice in Europe ' (2007 ) 16 International Review of Financial Analysis : 201 -222.

    • Search Google Scholar
  • Graham, J. R. — Harvey, C. R. (2001): The Theory and Practice of Corporate Finance: Evidence from the Field. Journal of Financial Economics, 60(2–3): 187–243.

    Harvey C. R. , 'The Theory and Practice of Corporate Finance: Evidence from the Field ' (2001 ) 60 Journal of Financial Economics : 187 -243.

    • Search Google Scholar
  • de Haas, R. — Peeters, M. (2006): The Dynamic Adjustment towards Target Capital Structures of Firms in Transition Economies. Economics of Transition, 14(1): 133–169.

    Peeters M. , 'The Dynamic Adjustment towards Target Capital Structures of Firms in Transition Economies ' (2006 ) 14 Economics of Transition : 133 -169.

    • Search Google Scholar
  • Harris, M. — Raviv, A. (1991): The Theory of Capital Structure. Journal of Finance, 46(1): 297–356.

    Raviv A. , 'The Theory of Capital Structure ' (1991 ) 46 Journal of Finance : 297 -356.

  • Hovakimian, A. — Opler, T. — Titman, S. (2001): The Debt-equity Choice. Journal of Financial and Quantitative Analysis, 36(1): 1–24.

    Titman S. , 'The Debt-equity Choice ' (2001 ) 36 Journal of Financial and Quantitative Analysis : 1 -24.

    • Search Google Scholar
  • Hutchinson, J. — Xavier, A. (2006): Comparing the Impact of Credit Constraints on the Growth of SMEs in a Transition Country with an Established Market Economy. Small Business Economics, 27(2–3): 169–179.

    Xavier A. , 'Comparing the Impact of Credit Constraints on the Growth of SMEs in a Transition Country with an Established Market Economy ' (2006 ) 27 Small Business Economics : 169 -179.

    • Search Google Scholar
  • Jensen, M. C. — Meckling, W. H. (1976): Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4): 305–360.

    Meckling W. H. , 'Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure ' (1976 ) 3 Journal of Financial Economics : 305 -360.

    • Search Google Scholar
  • Kayhan, A. — Titman, S. (2007): Firms’ Histories and their Capital Structures. Journal of Financial Economics, 83(1): 1–32.

    Titman S. , 'Firms’ Histories and their Capital Structures ' (2007 ) 83 Journal of Financial Economics : 1 -32.

    • Search Google Scholar
  • Klapper, L. F. — Sarria-Allende, V. — Sulla, V. (2002): Small- and Medium-size Enterprise Financing in Eastern Europe. The World Bank Development Research Group, Policy Research Working Paper Series, No. 2933.

  • KPMG (2009): KPMG’s Corporate and Indirect Tax Rate Survey 2009. KPMG International’s Tax Division.

  • Le Cornu, M. R. — McMahon, R. G. P. — Forsaith, D. M. — Stanger, A. M. J. (1996): The Small Firm Financial Objective Function. Journal of Small Business Management, 34(3): 1–14.

    Stanger A. M. J. , 'The Small Firm Financial Objective Function ' (1996 ) 34 Journal of Small Business Management : 1 -14.

    • Search Google Scholar
  • Lin, Y. — Hu, S. — Chen, M. (2008): Testing Pecking Order Prediction from the Viewpoint of Managerial Optimism: Some Empirical Evidence from Taiwan. Pacific-Basin Finance Journal, 16(1–2): 160–181.

    Chen M. , 'Testing Pecking Order Prediction from the Viewpoint of Managerial Optimism: Some Empirical Evidence from Taiwan ' (2008 ) 16 Pacific-Basin Finance Journal : 160 -181.

    • Search Google Scholar
  • Long, M. S. — Malitz, I. B. (1985): The Investment-financing Nexus: Some Empirical Evidence. Midland Corporate Finance Journal, 3: 53–59.

    Malitz I. B. , 'The Investment-financing Nexus: Some Empirical Evidence ' (1985 ) 3 Midland Corporate Finance Journal : 53 -59.

    • Search Google Scholar
  • Michaelas, N. — Chittenden, F. — Poutziouris, P. (1999): Financial Policy and Capital Structure Choice in UK SMEs: Empirical Evidence from Company Panel Data. Small Business Economics, 12(2): 113–130.

    Poutziouris P. , 'Financial Policy and Capital Structure Choice in UK SMEs: Empirical Evidence from Company Panel Data ' (1999 ) 12 Small Business Economics : 113 -130.

    • Search Google Scholar
  • Myers, S. C. (1977): Determinants of Corporate Borrowing. Journal of Financial Economics, 5(2): 147–175.

    Myers S. C. , 'Determinants of Corporate Borrowing ' (1977 ) 5 Journal of Financial Economics : 147 -175.

    • Search Google Scholar
  • Myers, S. C. (1984): The Capital Structure Puzzle. Journal of Finance, 39(3): 575–592.

    Myers S. C. , 'The Capital Structure Puzzle ' (1984 ) 39 Journal of Finance : 575 -592.

  • Myers, S. C. — Majluf, N. S. (1984): Corporate Financing and Investment Decisions when Firms have Information that Investors do not have. Journal of Financial Economics, 13(2): 187–221.

    Majluf N. S. , 'Corporate Financing and Investment Decisions when Firms have Information that Investors do not have ' (1984 ) 13 Journal of Financial Economics : 187 -221.

    • Search Google Scholar
  • Nivorozhkin, E. (2002): Capital Structures in Emerging Stock Markets: The Case of Hungary. The Developing Economies, 40(2): 166–187.

    Nivorozhkin E. , 'Capital Structures in Emerging Stock Markets: The Case of Hungary ' (2002 ) 40 The Developing Economies : 166 -187.

    • Search Google Scholar
  • Nivorozhkin, E. (2004): The Dynamics of Capital Structure in Transition Economies. Economics of Planning, 37(1): 25–45.

    Nivorozhkin E. , 'The Dynamics of Capital Structure in Transition Economies ' (2004 ) 37 Economics of Planning : 25 -45.

    • Search Google Scholar
  • Nivorozhkin, E. (2005): Financing Choices of Firms in EU Accession Countries. Emerging Markets Review, 6(2): 138–169.

    Nivorozhkin E. , 'Financing Choices of Firms in EU Accession Countries ' (2005 ) 6 Emerging Markets Review : 138 -169.

    • Search Google Scholar
  • Rajan, R. G. — Zingales, L. (1995): What Do We Know about Capital Structure? Some Evidence from International Data. Journal of Finance, 50(5): 1421–1460.

    Zingales L. , 'What Do We Know about Capital Structure? Some Evidence from International Data ' (1995 ) 50 Journal of Finance : 1421 -1460.

    • Search Google Scholar
  • Seifert, B. — Gonenc, H. (2008): The International Evidence on the Pecking Order Hypothesis. Journal of Multinational Financial Management, 18(3): 244–260.

    Gonenc H. , 'The International Evidence on the Pecking Order Hypothesis ' (2008 ) 18 Journal of Multinational Financial Management : 244 -260.

    • Search Google Scholar
  • Shyam-Sunder, L. — Myers, S. C. (1999): Testing Static Trade-off against Pecking Order Models of Capital Structure. Journal of Financial Economics, 51(2): 219–244.

    Myers S. C. , 'Testing Static Trade-off against Pecking Order Models of Capital Structure ' (1999 ) 51 Journal of Financial Economics : 219 -244.

    • Search Google Scholar
  • Stiglitz, J. E. — Weiss, A. (1981): Credit Rationing in Market with Imperfect Information. American Economic Review, 71(3): 393–410.

    Weiss A. , 'Credit Rationing in Market with Imperfect Information ' (1981 ) 71 American Economic Review : 393 -410.

    • Search Google Scholar
  • Szerb, L. — Ulbert, J. (2009): The Examination of the Competitiveness in the Hungarian SME Sector: A Firm Level Analysis. Acta Polytechnica Hungarica, 6(3): 105–123

    Ulbert J. , 'The Examination of the Competitiveness in the Hungarian SME Sector: A Firm Level Analysis ' (2009 ) 6 Acta Polytechnica Hungarica : 105 -123.

    • Search Google Scholar
  • Titman, S. — Wessels, R. (1988): The Determinants of Capital Structure Choice. Journal of Finance, 43(1): 1–19.

    Wessels R. , 'The Determinants of Capital Structure Choice ' (1988 ) 43 Journal of Finance : 1 -19.

    • Search Google Scholar
Submit Your Manuscript
 
The author instruction is available in PDF.
Please, download the file from HERE.

 

The description of the refereeing procedure is available in PDF.
Please, download the file from HERE.

 

 

Senior editors

Editor(s)-in-Chief: Prof. Dr. Mihályi, Péter

Editor(s): Ványai, Judit

Editorial Board

  • Ádám Török (Chairman) / University of Pannonia; Budapest University of Technology and Economics
  • Edina Berlinger / Corvinus University of Budapest, Department of Finance
  • Péter Halmai / Budapest University of Technology and Economics; National University of Public Service
  • István Kónya / Institute of Economics Centre for Regional and Economic Studies, University of Pécs
  • János Köllő / Institute of Economics Centre for Regional and Economic Studies
  • István Magas / Corvinus University of Budapest, Department of World Economy; University of Physical Education, Department. of Sports and Decision Sciences
 

Advisory Board

  • Ǻslund, Anders, Institute of International Economics, Washington (USA)
  • Kolodko, Grzegorz, Kozminski University, Warsaw (Poland)
  • Mau, Vladimir, Academy of National Economy (Russia)
  • Messerlin, Patrick A, Groupe d’Economie Mondiale (France)
  • Saul Estrin, London School of Economics (UK)
  • Wagener, Hans-Jürgen, Europa Universität Viadrina (Germany)

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary

Indexing and Abstracting Services:

  • EconLit
  • Elsevier GEO Abstracts
  • GEOBASE
  • International Bibliographies IBZ and IBR
  • JEL
  • Referativnyi Zhurnal
  • RePEc
  • SCOPUS
  • Social Science Citation Index
  • Index Copernicus

 

2020  
Total Cites 275
WoS
Journal
Impact Factor
0,875
Rank by Economics 325/377 (Q4)
Impact Factor  
Impact Factor 0,534
without
Journal Self Cites
5 Year 0,500
Impact Factor
Journal  0,38
Citation Indicator  
Rank by Journal  Economics 347/549 (Q3)
Citation Indicator   
Citable 37
Items
Total 37
Articles
Total 0
Reviews
Scimago 13
H-index
Scimago 0,292
Journal Rank
Scimago Economics and Econometrics Q3
Quartile Score  
Scopus 225/166=1,4
Scite Score  
Scopus Economics and Econometrics 392/661 (Q3)
Scite Score Rank  
Scopus 0,668
SNIP  
Days from  289
sumbission  
to acceptance  
Days from  447
acceptance  
to publication  

2019  
Total Cites
WoS
212
Impact Factor 0,914
Impact Factor
without
Journal Self Cites
0,728
5 Year
Impact Factor
0,650
Immediacy
Index
0,156
Citable
Items
45
Total
Articles
45
Total
Reviews
0
Cited
Half-Life
3,9
Citing
Half-Life
9,5
Eigenfactor
Score
0,00015
Article Influence
Score
0,052
% Articles
in
Citable Items
100,00
Normalized
Eigenfactor
0,01891
Average
IF
Percentile
28,437
Scimago
H-index
12
Scimago
Journal Rank
0,439
Scopus
Scite Score
214/165=1,3
Scopus
Scite Score Rank
Economics and Econometrics 355/637 (Q3)
Scopus
SNIP
0,989

 

Acta Oeconomica
Publication Model Hybrid
Submission Fee none
Article Processing Charge 900 EUR/article
Printed Color Illustrations 40 EUR (or 10 000 HUF) + VAT / piece
Regional discounts on country of the funding agency World Bank Lower-middle-income economies: 50%
World Bank Low-income economies: 100%
Further Discounts Editorial Board / Advisory Board members: 50%
Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100%
Subscription fee 2021 Online subsscription: 588 EUR / 732 USD
Print + online subscription: 688 EUR / 860 USD
Subscription fee 2022 Online subsscription: 600 EUR / 750 USD
Print + online subscription: 704 EUR / 880 USD
Subscription Information Online subscribers are entitled access to all back issues published by Akadémiai Kiadó for each title for the duration of the subscription, as well as Online First content for the subscribed content.
Purchase per Title Individual articles are sold on the displayed price.

Acta Oeconomica
Language English
Size B5
Year of
Foundation
1966
Publication
Programme
2021 Volume 71
Volumes
per Year
1
Issues
per Year
4
Founder Magyar Tudományos Akadémia
Founder's
Address
H-1051 Budapest, Hungary, Széchenyi István tér 9.
Publisher Akadémiai Kiadó
Publisher's
Address
H-1117 Budapest, Hungary 1516 Budapest, PO Box 245.
Responsible
Publisher
Chief Executive Officer, Akadémiai Kiadó
ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)