The Determinants of Choice of Types of Source of Financing in Developed and Emerging Markets

This work is devoted to the search for key determinants of capital structure formation of companies from developed and developing economies, as well as to the assessment of their impact on the choice of various sources of financing. Data from 150 companies in Eastern Europe and 150 companies in Western Europe were used to study the determinants of capital structure. This study includes the analysis of additional variables such as: the crisis period dummy, the company industry and the type of company ownership. It was also analyzed using the student test, the difference between the dependent variables of the two samples and the result revealed a slight difference between them. As a result of econometric analysis, the significance of most of the key determinants of capital structure was shown in the Wallpaper samples, except for one, Tangible assets, in the sample of Eastern Europe. After the inclusion of crises and types of companies and industries in the regression of dummy variables, it was noted that in Western European companies the importance of the crisis periods of 2008-2009 are significant at the 5% level, as well as the variables of industry and type of company ownership, while in Eastern Europe these indicators are not significant.