Year of Graduation
Motives of Capital Structure Choice in Emerging Markets
Strategic Corporate Finance
This paper presents the results of testing of dynamic trade-off and pecking order theories of the capital structure. The empirical analysis checks the determinants of capital structure of a large sample of quoted firms incorporated in Russia, China, India, Brazil and South Africa. This research uses Arellano-Bond GMM estimator for testing theories of capital structure choice on emerging markets. On the sample of 1 749 companies for the post-crisis period 2009-2017, the applicability of the dynamic trade-off theory and the partial applicability of the pecking order theory as the motivation for selecting the companies' capital structure are revealed.