Шатилова Марина Владимировна
Capital Structure Choice in Small and Medium-Sized Enterprises
This paper is devoted to the analysis of the relationship between firm-specific, institutional factors and capital structure of small and medium-sized enterprises of Central and Eastern Europe and Russia. Firm determinants were presented by such factors as profitability, size, tangibility and age. Institutional factors have been devised from the framework of Berger and Udell (2006) and depict countries’ lending infrastructure by information, legal, judicial, bankruptcy and tax environments. The empirical analysis conducted in the research has shown that the elements of countries’ lending infrastructure have a significant influence on the capital structure of small and medium-sized enterprises. Total debt level is higher in countries with more efficient information, judicial, bankruptcy environments. There are differences in the determinants of long-term and short-term debts, as judicial environment is important for the first one and bankruptcy environment – for the second one respectively. Also, legal environment, measured by degree of property rights, is a significant determinant of capital structure only for younger companies; information, tax and bankruptcy environments are significant for firms with less amount of total assets. As firm factors are concerned, the determinants of size, age, profitability and asset tangibility are considered to be significant for the capital structure of small and medium-sized enterprises.